Concordia University College Annual R
eport 2
011-­‐12 Concordia University College C Annual Report 2011-­‐12 The Board of Governors Concordia University College of Alberta October 3, 2012 ANNUAL REPORT to Alberta Advanced Education and Technology For the Year Ended March 31, 2012 Approved by Board of Governors October 3, 2012 TABLE OF CONTENTS STATEMENT OF ACCOUNTABILITY ..................................................................................................................................................... 7 MISSION, VISION, VALUES STATEMENT ............................................................................................................................................ 9 DIRECTIONAL STATEMENTS ............................................................................................................................................................ 10 PART 1: MESSAGE FROM THE PRESIDENT AND BOARD CHAIR ............................................................................. 11 Message from the President and Board Chair ............................................................................................................. 11 PART 2: OPERATIONAL OVERVIEW ..................................................................................................................................... 13 A. CORE PROGRAMS ................................................................................................................................................................ 13 B. MAJOR ACCOMPLISHMENTS 2011-­‐2012 .................................................................................................................. 13 Institutional .............................................................................................................................................................................. 13 Personnel ................................................................................................................................................................................... 14 Student Services ..................................................................................................................................................................... 15 Library ......................................................................................................................................................................................... 16 Technology ................................................................................................................................................................................ 16 Research Activity ................................................................................................................................................................... 16 Learning Enhancement ...................................................................................................................................................... 17 C. ENROLLMENT 2011-­‐2012 .................................................................................................................................................... 17 Concordia Enrollment Strategy ..................................................................................................................................... 20 Off-­‐Campus Recruitment Activities ............................................................................................................................. 20 On-­‐Campus Recruitment Activities ............................................................................................................................. 21 Special Events ....................................................................................................................................................................... 21 Communications .................................................................................................................................................................. 21 D. FACILITIES ................................................................................................................................................................................. 22 E. STAFFING ................................................................................................................................................................................... 23 F. ENVIRONMENTAL FACTORS AFFECTING INSTITUTIONAL PERFORMANCE .................................................................... 23 Opportunities ............................................................................................................................................................................. 23 Challenges and Risks .............................................................................................................................................................. 23 Donor Support ........................................................................................................................................................................... 25 Effectiveness With Which Challenges Were Approached ....................................................................................... 28 Impact of Assumptions on Performance ........................................................................................................................ 28 G. SIGNIFICANT CHANGES ........................................................................................................................................................... 29 Operating Efficiency ............................................................................................................................................................. 29 Consultative Process ............................................................................................................................................................ 30 Program Initiatives .............................................................................................................................................................. 30 H. MAJOR OPERATIONAL GRANTS IN 2010-­‐2011 ................................................................................................................ 30 I. OPERATIONAL EFFICIENCIES ................................................................................................................................................. 30 Financial Highlights ............................................................................................................................................................. 30 J. GOALS, EXPECTED OUTCOMES AND PERFORMANCE MEASURES .................................................................................... 32 Actual Performance and Achievement ...................................................................................................................... 32 Report on University College Entrance Program, with special reference to Aboriginal students ........ 37 MANAGEMENT SUMMARY ................................................................................................................................................................ 42 Maintaining Consistent Enrollment ............................................................................................................................ 42 Maintaining Adequate Cash Flows ............................................................................................................................... 42 Maintaining Affordable Salaries and Benefits for Faculty and Staff ........................................................ 43 Meeting Rising Infrastructure Costs ........................................................................................................................... 45 Development of a New Marketing Plan ..................................................................................................................... 45 Sector Access to the Proposed Common Application System (APAS) ..................................................... 46 Masters Programs at Concordia .................................................................................................................................... 46 Development and Implementation of the Concordia Tomorrow strategy ........................................... 46 Summary of Institutional Performance .................................................................................................................... 46 Ongoing Initiatives ............................................................................................................................................................... 47 STATEMENT OF ACCOUNTABILITY Concordia University College of Alberta’s Annual Report for the year ended March 31, 2012, was prepared under the direction of Concordia’s Board of Governors in accordance with all Ministerial guidelines. All material economic, environmental or fiscal implications of which we are aware have been considered in the preparation of this report. John J. McDonald III Chair, Board of Governors Concordia University College of Alberta October 3, 2012 Concordia University College of Alberta’s management is responsible for the preparation, accuracy, objectivity and integrity of the information contained in the Annual Report, including the financial statements, performance results, and supporting management information. Systems of internal control are designed and maintained by management to produce reliable information to meet reporting requirements. The system is designed to provide management with reasonable assurance that transactions are properly authorized, reliable financial records are maintained, and assets are properly accounted for and safeguarded. The Annual Report has been approved by the Board of Governors and is prepared in accordance with Ministerial guidelines. Dr. Gerald S. Krispin President and Vice-­‐Chancellor Concordia University College of Alberta October 3, 2012 Concordia University College Annual Report 2011-­‐12 9 MISSION, VISION, VALUES STATEMENT
Mission
Concordia University College of Alberta is a community of learning grounded in scholarship, freedom, and the Christian faith, preparing students to be independent thinkers, ethical leaders, reflective servants in their occupations, and citizens for the common good.
Vision
Concordia University College of Alberta will be recognized nationally and internationally for its graduates' knowledge, skill, integrity, and wisdom. VALUES
Concordia is seeking an institutional reputation and profile both locally and nationally as an excellent smaller Christian university true to its mission and vision, and a good choice for all students seeking to enrol in its programs. Concordia maintains its mission as a Christian university serving the public. Concordia seeks to respond to the expanding expectations of a diverse population of students, faculty, and staff with various worldviews and experiences, varied generational attitudes, various accommodation requirements, and with a growing sense of the necessity of equal treatment in Canada’s pluralistic society. Concordia seeks out faculty who support Concordia's mission. Concordia seeks to recruit, retain, and train administrators and staff who contribute to its mission and also to put in place appropriate human resource planning to support the ongoing m ission in spite of the constant challenges of competition for scarce human resources. Concordia seeks collaborative opportunities with community partners and other educational institutions which make sense and allow it to enhance its mission without placing undue hardships on our institution brought about by such arrangements. (Mission /Vision/ Values approved by Board August 24, 2010) Strategic Goals
FOSTER A D YNAMIC I NTELLECTUAL E NVIRONMENT… …marked by students engaged in learning both inside and outside the classroom, by faculty dedicated to excellence in teaching, mentoring, and professional achievement, and by a rich blend of rigorous undergraduate programs complemented by select graduate and professional programs. DELIVER A D ISTINCTIVE E DUCATION… …that integrates fields of study, connects theory to practice, combines liberal with professional education, and promotes interaction between campus life and classroom learning in order to form men and women who will flourish in an increasingly diverse and interconnected world. PROVIDE A N E NRICHING S TUDENT E XPERIENCE… …with programs and facilities that enhance students' capacity to lead socially, culturally, and physically satisfying lives, and that develops leaders, promotes service, and builds community. MODEL T HE B EST I N C HURCH-­‐RELATED H IGHER E DUCATION… … by continually discovering new ways to connect faith and reason in the lives of students, thereby enabling them to become ethical and responsible citizens, and by continuing to lead the conversation in our independent sector and the Lutheran Educational Conference in North America (LECNA) about the vital importance of church-­‐related higher education. PURSUE C ONCORDIA'S H ISTORIC C OMMITMENT T O T HE P UBLIC G OOD THROUGH E NHANCED V ISIBILITY A ND A CCESSIBILITY I N E DUCATION F OR ALL S EGMENTS O F S OCIETY… … by enhancing strategies to recruit and retain a diverse student body, especially students from northern, rural, minority, aboriginal, and under-­‐represented communities (such as the handicapped), that is both multicultural and international, so as to ensure that Concordia is proactive in meeting the educational needs of a changing Canadian society. CONFIGURE C AMPUS S PACES T HOUGHTFULLY A ND A ESTHETICALLY… … so as to enhance learning, build community, and radiate hospitality. Concordia University College Annual Report 2011-­‐12 10 DIRECTIONAL STATEMENTS In seeking to achieve its mission and vision, Concordia has set a new direction through a program entitled “Concordia Tomorrow” that incorporates the planning priorities of AEAE: 1. Concordia will be student-­‐centered. Concordia will establish regularly scheduled procedures to ascertain student needs, to meet those needs, and to review how well it met them. 2. Concordia will be of sufficient size to prosper. To reach an economy of scale, Concordia will aim to increase student enrolment to 3000 FLE by formulating a growth policy for new majors, programs, and degrees in all areas, as indicated by assessed student need and demand. 3. Concordia's future programs will enhance its vitality by building on its current strengths. Concordia will continue to develop niche areas in its undergraduate, graduate, and professional programs. Concordia will distinguish itself through the development and implementation of superior program designs and program delivery. 4. Concordia will seek out and initiate collaborations in areas where clear mutual benefit can be demonstrated. Such collaborations will be primarily within Alberta and may include shared academic programs and research with other institutions, shared projects with industry, and shared infrastructure. 5. Research at Concordia, besides being an important measure of the quality of our university, will inform and complement ongoing excellence in teaching. Concordia will encourage and support research by all faculty and academic staff as well as by individuals and groups of students when appropriate. 6. Concordia will honour its Lutheran heritage and value the diversity of its faculty, staff, and student population. It will provide a foundation of faith and intellectual integrity that supports a scholarly community based on acceptance and respect. 7. Concordia will establish, maintain, and review administrative and policy structures that satisfy the criteria of the "Concordia Tomorrow" plan. Concordia University College Annual Report 2011-­‐12 11 PART 1: MESSAGE FROM THE PRESIDENT AND BOARD CHAIR MESSAGE FROM THE PRESIDENT AND BOARD CHAIR During the past year Concordia continued to align its governance and business processes ever more closely with those of the public institutions within Campus Alberta, paying special attention to the goals outlined by Alberta Enterprise and Advanced Education. Most significant in this alignment was the transition of a fiscal year-­‐end from June 30 to March 31. Consequently the present Annual Report is de facto a nine month report, reflecting this transition. The fiscal data contained within this report and the Audited Financial Statements appended to this report therefore constitute a new base-­‐line for subsequent Annual Reports. As a point of interest, however, our trailing 12-­‐month accounting for the year ending June 30 revealed that we remained on track with our previous year’s projections and expectations during the entire twelve-­‐month period. Nevertheless, one further caveat needs be articulated: unlike the fiscal data reported here, some of the other elements reported (such as publications and staffing) are more difficult to circumscribe as precisely as the fiscal data this report contains. Yet we believe the report overall remains accurate and maintains the integrity rightly expected by the Ministry. By way of summary, Concordia finished its nine-­‐month year, as well as its trailing twelve-­‐month period with a marginally positive cash position. This was achieved in no small part due to the willingness of Faculty and Staff to accept a seven-­‐day furlough over a twelve-­‐month period with respect to salary. This reduction in overall payroll provided the bulk of the surplus reported and maintained Concordia’s excellent fiscal position. Reductions in travel, purchase only of essential capital equipment, a freeze on new hires, and several key retirements all played a part in achieving Concordia’s positive fiscal outcome. All these were measures taken to help Concordia fulfill its mission and vision and helped it remain a meaningful destination for students seeking a superior post-­‐secondary learning experience. Yet Concordia did not spend the year in a holding pattern. Significant institutional goals were pursued, not the least among these being the vigorous pursuit of an internationalization strategy mandated by the Board and carried out by a newly established VP International who began his work in late December. While much of the success of this strategy properly ought to be reported in next year’s Annual Report, we believe that its mention in this context is apropos, since the ground-­‐work for its implementation was the result of the “New Initiatives Committee” of the Board under the leadership of Board Member Mr. Lyle Best in December of 2011. Several of the projects planned within this committee have begun to be realized, from the engagement of six Brazilian universities in meaningful partnerships to the purchase of property for the building of much needed student residence space. Concordia continues to carefully weigh risk with benefit in order to advance its goal of becoming a nationally and internationally recognized smaller university. Concordia University College Annual Report 2011-­‐12 12 The governance reforms over the past two years continue to bear fruit in an expanded Board of Governors that draws members from industry, business, other post-­‐secondary institutions, former government and current community leaders. The expertise located in the new Board enables Concordia to meet the significant challenges that we anticipate, while continuing to excel as a smaller world-­‐class university. As this report demonstrates, Concordia has the will and determination to accomplish all this and more despite the constrictions imposed by limited resources and external challenges. Concordia’s Board of Governors, along with its President and Vice-­‐Chancellor, are committed to Concordia’s advancement as a superior smaller university in Alberta by maintaining efficient and effective operations and actively seeking and embracing change for the better; they are committed to remaining responsive and collaborative members of Campus Alberta; and they are committed to maintaining Concordia’s unique mission, vision, and values, all in order to provide exceptional educational opportunities and ultimately the foundation for a meaningful life for all our current students and future graduates. John J. McDonald III Chair, Board of Governors Concordia University College of Alberta Dr. Gerald S. Krispin President and Vice-­‐Chancellor Concordia University College of Alberta Concordia University College Annual Report 2011-­‐12 PART 2: OPERATIONAL OVERVIEW A. CORE PROGRAMS ACCREDITED No changes were implemented in the 2011-­‐2012 academic year in the following accredited degree programs: Bachelor of Arts (3-­‐year), Bachelor of Arts (4-­‐year), Bachelor of Science (3-­‐year), Bachelor of Science (4-­‐year), Bachelor of Management (4-­‐year), Bachelor of Environmental Health (After Degree), Bachelor of Education (After Degree), Master of Information Systems Security Management or Master of Arts in Biblical and Christian Studies. TRANSFER Concordia maintained articulation agreements with NAIT, Grant MacEwan University, Grande Prairie Regional College, Keyano College, and Red Deer College. These agreements allow business diploma graduates and degree-­‐transfer students to join Concordia’s Management degree program in year two or year three. COLLABORATIVE PROGRAMS No new collaborative programs were implemented in the 2011-­‐2012 academic year. OTHER The Director of Parish Services program, the Parish Nurse program, the Diploma of Integrated Studies in Career Development, and the Special Sessions programs did not change during the year. The University and College Entrance Programs (UCEPs) for Aboriginal Adults and for General Admission and the Pre-­‐UCEP Program continued as before. B. MAJOR ACCOMPLISHMENTS 2011-­‐2012 INSTITUTIONAL The “Concordia Tomorrow” project continued and is making significant progress in the advancement of key initiatives with the consultation of Noel-­‐Levitz. The adopted directional statements are serving their purpose in guiding our project teams to identify and fill gaps in technology integration, student services integration, integrated institutional planning, roles clarification, and performance measures for administration and faculty, as well as establishing a modernized and integrated marketing plan. 13 14 Concordia University College Annual Report 2011-­‐12 ACADEMIC PROGRAMS 1. Concordia presented to the Minister of Advanced Education and Technology its proposals for a four-­‐year major in Sociology and a four-­‐year ‘Combined Concentrations’ Degree. Both programs passed System Coordination and are now being considered by the Campus Alberta Quality Council. Concordia also completed a proposal for a 4-­‐year major in General Psychology, which is currently under review by an external evaluator. Concordia also completed a proposal for a Master of Public Health program. 2. The Master of Information Systems Assurance Management program received Ministerial approval and is being launched in September of 2012. 3. Under the leadership of Concordia’s new Vice-­‐President International, Dr. Manfred Zeuch, Concordia has entered into a series of agreements with a number of international Universities and governments, for the sake of student, staff, and faculty exchange, international student recruitment, as well as providing international study opportunities to Concordia’s Canadian students. 4. The following programs received internal approval: a. Graduate Certificate in Public Health Vulnerable Populations was launched in January 2012. This was added to the two existing certificates. b. Graduate Certificate programs in Leadership; c. Graduate Certificate Strategic Communications; d. Graduate Diploma in Information Systems Assurance; e. Graduate Certificate in Psychological Assessment; and f. Graduate Diploma in Psychological Assessment, all to be launched in September 2012, and Graduate Certificate in Animal-­‐Assisted Therapy, to be launched in spring 2013. PERSONNEL 1. Concordia appointed three new senior administrators: Dr. Dwayne Harapnuik, Vice-­‐President Academic, Dr. Manfred Zeuch, Vice-­‐President International, and Dr. Jonathan Strand, Associate Vice-­‐President Academic and Dean of Undergraduate Studies. 2. Concordia also conducted several successful searches for new faculty members: Dr. Patrick Kamau was appointed Assistant Professor of Biochemistry in the Winter of 2012, and Dr. Mariola Janowicz was appointed Assistant Professor of Biology in the Spring of 2012. Both had previously provided exemplary service to Concordia as lab instructors. Concordia also conducted successful searches for several addition Assistant Professor appointments effective in August of 2012: Dr. Tolly Bradford (History), Dr. Travis Dumsday (Philosophy), Caroline Howarth (M.F.A., Drama). The launch of Concordia’s new Master of Information Systems Assurance Management program was supported by the new appointment of Dr. Sergey Butakov as Associate Professor (MISAM), as well as the move of Dr. Shaun Aghili from our undergraduate Management program to an appointment as Assistant Professor also within the MISAM program. 3. Our faculty continue to be productive scholars with the publication of a number of books and scholarly articles, and through various artistic presentations and scholarly interviews. Concordia University College Annual Report 2011-­‐12 15 Concordia’s faculty have also secured a number of research grants, including a $45,961 grant to our Professor of Political Science, Dr. Elizabeth Smythe, as chief investigator. 4. Concordia’s new SSHRC-­‐funded Canadian Centre for Scholarship and the Christian Faith hosted its first conference in May of 2012, on the theme of The Humanities and the Christian Faith. 5. Concordia’s faculty, staff, and students hosted a ‘Dickens Day’ in commemoration of the Bicentennial of Charles Dickens’ birth. The day featured all-­‐day lectures and readings, and also celebrated the work of Concordia’s own Dickens scholar, Dr. Ruth Glancy. STUDENTS 1. In the Fall 2012 issue of the Globe & Mail Canadian University Report, Concordia is pleased to report that its students gave us an especially high rating among very small institutions for quality of education and career preparation in Arts, Humanities, Science, and Management.
2. The June 2012 publication of the Canadian University Survey Consortium focused on graduating students. Concordia’s 2012 graduating class rated their classroom instruction and personal interactions with faculty in class as having contributed very much to their growth and development. Concordia’s ratings are significantly higher than similar sized universities across Canada that primarily offer undergraduate studies.
3. In efforts to create a warm environment in which to meet with prospective students and their parents, a Welcome Centre was created. While it is in its infancy, it is expected to enable enhanced service to prospective students, thereby increasing enrolment. 4. Concordia continues to have outstanding results for our Environmental Health program graduates who after graduation sit for the certification exams of the Canadian Institute of Public Health Inspectors. In comparison with graduates from BCIT, Ryerson, and Cape Breton University, Concordia’s student success rates are exceptional and highest in all categories. STUDENT SERVICES 1. Concordia staff was involved in the planning and implementation committees of the CAFSA (Canadian Association of Financial Aid Administrators) conference. 2. Campus Security: Concordia’s Behaviour Support and Intervention Team provided coordinated management of potential endangering behavior in the campus community. Approximately 75 reports were received to date. Guidelines for identifying and reporting problematic incidents were given to students, faculty, and staff. 3. Concordia increased the activities of academic strategists to include three Academic Strategies 100 sections focused on meeting the needs of students at academic risk from specific populations, including Admissions, Returning Students, and Athletics. 4. Concordia’s Library, IT, and Student Life departments initiated planning on a Learning Commons project. The Learning Commons project will see most front-­‐line student services readily accessible to students within a common space in the library. 5. Our Student Services and IT departments embarked on major projects to automate our registration systems. This was unveiled in 2012 and will continue to be enhanced for the foreseeable future. 16 Concordia University College Annual Report 2011-­‐12 FACILITIES AND INFRASTRUCTURE Concordia implemented its policy for the use of equipment for research purposes on and off campus, as well as clarifying procedures for the use of equipment purchased through an external research grant. LIBRARY The most significant change relative to the report of last year was Concordia’s reluctant acceptance of the recommendation by the AUCC to sign on the revised tariff offered by Access Copyright. While Concordia was philosophically opposed to signing on, we felt that we did not have the capacity or legal resources to stand in objection to the revised tariff along with Athabasca University et al. who did not sign. Concordia was especially hopeful that with the passage of Bill C-­‐30 a respite from this tariff would be provided. Unfortunately the timing proved inopportune, and Concordia is now obligated to comply with Access Copyright’s imposition of its tariff. TECHNOLOGY 1. During the 2011-­‐2012 year, Concordia greatly expanded its online, web-­‐based facilities for students. Using in-­‐house resources, Concordia established an online registration system for undergraduate students, online fee payments, online book ordering, online T2202As, online confirmation of registration, and online payment of registration deposits. 2. Concordia upgraded its learning management system (LMS) to Moodle 2.0. 3. Concordia adopted Google Apps for staff use, primarily for document collaboration, further building on the full Google Apps/Email system adopted for students in the previous year. 4. Concordia established a number of new smart classrooms for Continuing Education instruction in the space vacated by Concordia High School. 5. New computers were purchased to replace the computers in five campus computing labs as well as twelve computer-­‐equipped classroom lecterns. RESEARCH ACTIVITY 1.
2.
3.
4.
5.
Books Authored/Co-­‐Authored (includes chapters in books): 11 Books Edited/Co-­‐Edited: 5 Articles in Refereed Journals: 93 Articles (and equivalents) in Non-­‐refereed Publications: 30 Presentations a. Conference Presentations: 47 b. Public Presentations: 40 c. Media Appearances: 4 6. Research Grants a. Reduction in Teaching Assignment Awards: 5 faculty members for a total of 36 hours b. Internal Research Grants: $44,891 c. External Research Grants (includes totals of multi-­‐year grants): $269,473 7. Peer-­‐reviewed Publications by Student Authors: 46 Concordia University College Annual Report 2011-­‐12 17 LEARNING ENHANCEMENT 1. Focused initiatives on improving student persistence and retention include the addition of the Bounce Back program in the Winter 2012 semester, a peer-­‐mentoring service for students who performed below expectation in the Fall 2011 semester. The Writing Centre hours are doubled for the 2012-­‐13 academic year to provide writing and learning support. 2. 2011-­‐12 saw the launch of an Early Alert program, a formal, proactive feedback system through which students and student-­‐support agents are alerted to early manifestations of poor academic performance or academic disengagement. Concordia continues to participate in the Washington Center program for internships supported by AET. 3. Concordia also participates on the Steering Committee of the Study Abroad Program of the Alberta-­‐Saxony Initiative. 4. Several learning enhancement initiatives were implemented in September of 2011, including expanded services for students with disabilities and the establishment of ‘First-­‐Year Learning Communities,’ groups of new and continuing students working with faculty to transition more effectively into university studies. Approximately 25% of first-­‐year students participated in academic, service learning, and recreational activities. 5. Additional study spaces for students were secured and furnished. C. ENROLLMENT 2011-­‐2012 Our Census Day enrollment for 2011-­‐2012 degree programs totaled a full-­‐load equivalent (FLE) of 1219.36. The LERS actual count presents another point of reference for degree programs. For the 2011-­‐2012 year it has been calculated at an FLE of 1167.31 (1241.79 including UCEP). Enrollment (FLE) 2011-­‐2012 Census Day LERS Actual Arts/Science/Open Studies
862.56
820.10
134.50
133.50
124.57
119.08
51.90
50.90
35.00
35.65
10.83
1,219.36
8.08
1,167.31
Education
Management
Environmental Health
MISSM
MA Biblical & Christian
Studies
Total for Degree Programs
UCEP = LERS Total (FLE) = 77.48 LERS for All Programs = 1241.79 18 Concordia University College Annual Report 2011-­‐12 Enrolments continue to be a significant challenge, both in terms of the recruiting of new students and the retention of existing students. To meet this challenge Concordia has engaged Noel-­‐Levitz as of January 2012, anticipating that the consulting advice in conjunction with a directed and clearly focused marketing strategy will rebuild Concordia’s student base in subsequent years. FLE 1700.00 1521.85 1525.99 1500.00 1431.29 1424.20 1297.84 1300.00 1336.82 1301.28 1242.00 1100.00 FLE 900.00 700.00 500.00 2004-­‐05 2005-­‐06 2006-­‐07 2007-­‐08 2008-­‐09 2009-­‐10 2010-­‐11 2011-­‐12 TABLE 1 INCLUDES UCEP LERS TOTALS Apparent from the above is the a serious erosion in enrolment over the past two years. This decline is not insignificant, in light of the fact that MacEwan University (and to a lesser extent NAIT) have historically been institutions that have transferred students to Concordia. With Business programs at both institutions, Concordia has been subject to a continued decline in transfers that is reflected in the enrolment graph in Table 2 below. Significantly higher tuitions because of lower government grants make Concordia less desirable for many students as a transfer institution. With MacEwan establishing itself as a university and NAIT with its BBA, students who had previously transferred to Concordia are making the decision to finish their programs within their institutions. While Concordia has aspirations of becoming an institution of first choice, the premium in tuition and broader range of programming available at fully funded institutions is creating significant concern. Concordia University College Annual Report 2011-­‐12 19 The anticipated decline in enrolment of approximately 25 FLE that was forecast for fiscal year 2011-­‐
2012 proved worse than anticipated: the past year saw a drop of nearly 60 FLE. In an effort to maintain and enhance enrollment, Noel Levitz Higher Education Consultants have been contracted to assist with enrollment strategies, beginning in January 2012. Unfortunately, a recovery from this drop cannot be anticipated for at least two more years given the lag time for the implementation of remediation measures. Consequently, a further drop of enrolment of 40 FLE is being anticipated, and Concordia’s management has budgeted accordingly. As noted above, most of the decline in enrollment in recent years is attributed partly to the loss of transfer students from McEwan, the University of Alberta, and NAIT. As to the decline in transfers from the U of A, it is implicit (though quite evident) that where Concordia had been the first choice of transfer by students over what was “MacEwan College,” the rebranding of MacEwan to “university” has redirected this transfer flow in favour of Edmonton’s “unique comprehensive university,” as MacEwan continues to present itself on the Apply Alberta site. On this point, Concordia is most disheartened that despite repeated requests to the Assistant and the Deputy Minister, this usurping of a designation reserved for the pure research universities of the six sector model of the Roles and Mandates Policy Framework has not been censured, nor has its implication for Concordia taken at all seriously. But we believe the data speak for themselves. Historic Transfers In 120 TOTAL Transfers 100 80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Grant MacEwan 73 114 79 63 64 64 31 26 25 18 Univeristy of Alberta 66 73 43 34 37 62 27 25 24 25 NAIT 25 29 32 16 23 28 12 9 9 5 Table 2 Transfers to Concordia Incrementally higher tuition at Concordia also inhibits enrollment growth, as the two “university” alternatives provide a price-­‐point that enhances accessibility. While it may be argued that Concordia is able to meet gaps in revenue by being exempt from tuition caps imposed by the Ministry on public institutions, it is also evident that Concordia is thereby compelled to operate at a tuition level that limits accessibility and serves as significant deterrent for transfers. Concordia, in these circumstances, is not deemed as a university of first choice by those for whom resourcing is an issue. In other words, apart from transfers, even recruiting is proving a daunting task when facing advertising budgets of other institutions that exceed the entire operational budget of Concordia. 20 Concordia University College Annual Report 2011-­‐12 As to tuitions, the most recent reported tuition comparisons have Concordia post tuition at some $2,300 higher than the Alberta post-­‐secondary average, $1,700 higher than the U of A, and over $2,100 higher than MacEwan University. (The differential is somewhat skewed, however, as fees, and other sundry costs narrow the margin significantly, further differentiated by program choices). Despite efforts to close the gap, Concordia administration is compelled to maintain overtly higher tuition rates, which unfortunately tends to be the prime comparator, not the overall actual educational costs. Yet whatever the actual difference, Concordia students end up bearing the cost of the funding differential when attending Concordia as opposed to other publically funded institutions. With the advent of a new government along with new staff in the redefined AEAE, Concordia would welcome a discussion that might lead to remediate a condition where Concordia students are funded differently than students in the rest of Campus Alberta. Specifically, Concordia would very much like to learn what conditions would need to be met so that the Ministry would be able to eliminate what is perceived to be (and this may need to be explored as to whether or not it is actually so!) a very significant differential in the way it funds students who choose to be in the Independent sector. It appears that funding does not follow the student as it does in the K-­‐12 system. Where AE does not discriminate against students in their first 12 years of education, regardless of their attendance of charter or alternative schools, AEAE seems to continue to uphold a position that predates the embracing of alternative and charter schools within the (partially) publically funded Independent Academic sector. Obviously, Concordia would not receive the same capital support as do publicly funded universities any more than charter schools receive capital funding (though it is our understanding that they do receive facility maintenance support!). It therefore remains puzzling as to the application of policy as it differs so significantly from one ministry to the other, imposing an evident disadvantage to the students who choose Concordia and other post-­‐secondary schools in the Independent Sector. Yet despite the disadvantage to which this subjects our students, Concordia continues to seek ways to manage its resources effectively so that access, the quality of education and services provided to our students is in no way compromised. This includes a systematic and comprehensive approach to increase enrolments. CONCORDIA ENROLLMENT STRATEGY With the challenges listed above, Concordia is continuing to look at ways to compensate by increasing attention on student recruitment. Concordia University College of Alberta’s recruitment activities were divided into three categories: 1. Off-­‐campus recruiting 2. On-­‐campus recruiting 3. Special events OFF-­‐CAMPUS RECRUITMENT ACTIVITIES As a member of the Educational Liaison Association of Alberta (ELAA), a student recruitment officer traveled throughout Alberta from September to June, visiting over 115 high schools and presenting at two counselor updates. Student recruitment officers visited 48 high schools within the Edmonton and surrounding areas for various booths and fairs. Separate from this, recruitment officers gave 72 off-­‐campus presentations. This included presentations for high school CALM classes and lunch-­‐hour information sessions. Concordia University College Annual Report 2011-­‐12 21 ON-­‐CAMPUS RECRUITMENT ACTIVITIES Concordia hosted 43 prospective students within its student-­‐for-­‐a-­‐day program. Through this program, prospective students are matched with current Concordia students. The ‘students-­‐for-­‐a-­‐day’ attend classes, tour campus, and meet existing Concordia students and faculty. They also sit down with an admissions advisor to discuss program requirements and to have their remaining questions answered. If a student is not able to commit to the student-­‐for-­‐a-­‐day program, personalized campus tours are arranged. This year, 74 personalized tours were provided to prospective students or students who had already applied for admission. School groups are also welcome to visit campus. During these visits a recruitment officer gives a presentation on post-­‐secondary education, and Concordia and its programs. A tour is also provided. This year, there were nine school visits to Concordia. SPECIAL EVENTS Open House is a time for prospective students and their families to visit campus and see firsthand what Concordia offers. Throughout the day there are specific program and department information sessions, displays and demonstrations. Faculty, departments and student clubs also have trade-­‐show style displays. The number of visitors for the two Open Houses was: •
•
October 22, 2011 -­‐ 393 visitors March 10, 2012 -­‐ 352 visitors The Counselors’ Brunch is an annual update for high school guidance counselors. This event is a critical recruiting tool to promote Concordia, because school counselors are a major communication medium between Concordia and prospective students. This event highlights Concordia’s programs and recruitment events available to high school students. 93 guidance counselors attended the 2011 Counselor’s Brunch. COMMUNICATIONS 1. Communications with prospective students and their parents is a key factor in student recruitment. Innovative communications mechanisms promote Concordia on a larger scale, delivering information daily, weekly, and monthly to prospective students, guidance counselors, and parents. 22 Concordia University College Annual Report 2011-­‐12 2. E-­‐Newsletter Concordia’s E-­‐Newsletter is a monthly update to subscribed prospective students and guidance counselors. 3. Social Media – Facebook, YouTube, Twitter and Blogging a. Facebook gives Concordia the opportunity to connect with many prospective students quickly and efficiently. Prospective students are able to instant message a member of the recruitment team and have questions answered immediately. Updates on what’s happening on campus, achievements, admission and financial aid information, and events are posted daily. b. Twitter is becoming an integral part of Concordia’s recruitment and student engagement efforts. Similar to Facebook, Concordia is able to send messages, update prospective students and continuing students on what’s happening on campus, achievement, application information and events. c. YouTube is being utilized as another medium for prospective students to receive information about Concordia. d. Blogging can be utilized on the Concordia website with student blogs about student life to personalize the Concordia experience to prospective students. 4. High school mail-­‐out Promotional materials were and will continue to be sent to all Alberta high schools, along with key high schools in Saskatchewan, British Columbia, and Manitoba. D. FACILITIES 1. Concordia Welcomes the University of Lethbridge: Alumni House, originally housing the offices of the Development department and since re-­‐purposed as dormitory space, has again been transformed to serve as a very well functioning office environment for the University of Lethbridge’s Edmonton Campus. 2. The Education After-­‐Degree program has been re-­‐located to the Continuing Education Centre/Ralph King Athletic Centre. Significant space enhancements were required to achieve the kind of collaborative space required by the program. Second floor classroom space was redeveloped to include six new office spaces, reception and meeting space, and a computer lab. 3. An under-­‐utilized computer lab has been redeveloped to serve as the new Concordia Welcome Centre. Much more than recruitment; this space will greatly enhance the student experience by providing a Hub for accessing a variety of available services and a place for peers and mentors to meet and mingle. 4. Continuing Concordia’s commitment to the City of Edmonton to provide a Public access corridor to the river valley parks system, Concordia has taken steps to enhance and beautify the corridor with new landscape features, the planting of 19 trees and the addition of lighting bollards along a portion of the corridor. Concordia University College Annual Report 2011-­‐12 E. 23 STAFFING With regard to staffing, Concordia continues to review various roles and responsibilities at all levels, in keeping with one of our Concordia Tomorrow goals: Concordia will establish, maintain, and review administrative and policy structures that satisfy the criteria of the "Concordia Tomorrow" plan. In an effort to rejuvenate the organization, the voluntary retirement incentive program introduced in 2010-­‐2011 has been made a permanent feature of staffing policy to provide an incentive for faculty, staff, and administrative members to retire. To date, six faculty members have taken part in this initiative. Most of the positions vacated are being filled with younger faculty starting at lower pay levels. In order to meet budget goals and in order for us to establish a foundation that would carry Concordia through cash flow constrictions related to funding or tuition shortfalls, Concordia has reduced support and administrative staffing significantly through attrition, early retirement and not filling vacant positions. In 2011-­‐2012 the net increase/decrease for staffing was 0 FTE in full-­‐time staffing. F. ENVIRONMENTAL FACTORS AFFECTING INSTITUTIONAL PERFORMANCE OPPORTUNITIES 1. Concordia’s Board struck an “Initiatives Taskforce” under the leadership of Mr. Lyle Best in October of 2012. Among the initiatives tabled through this taskforce were the following: a. a comprehensive Internationalization Strategy that was first to target Brazil (Implemented); b. a Student Residence Initiative to accommodate rural and international students (In process); c. a Re-­‐tasking of the Upper Floor of Schwermann Hall to become Board Room and Reception space (In process); d. a partnership with Hy-­‐Power Nano to utilize Concordia as its testing facility for new nano-­‐infused coatings (Did not proceed); e. Exploration of the establishment of an Optometry School at Concordia (On hold); and f. Initial conversations with the University of Lethbridge to relocate its Edmonton Campus began in early March. The potential for comprehensive collaboration by two institutions and sectors within Campus Alberta is thereby enhanced. (This has since been realized). CHALLENGES AND RISKS Essentially, the risk factors affecting Concordia remain constant, and so does this evaluation of those challenges and risks. Concordia’s fiscal challenge is to secure operational funding sources at levels that are not vulnerable to the enrollment vicissitudes described above. Government operating revenue has been frozen for the past three fiscal years, and will likely remain so for the foreseeable future. 24 Concordia University College Annual Report 2011-­‐12 Concordia is grateful to Alberta Advanced Education and Technology for providing a key component of this secure operational funding, without which Concordia would not be the successful small university that it has become. Yet the (now reduced) 75% ceiling set some years ago for the Independent Academic Institutions continues to preclude many creative initiatives for new learning opportunities by making them high-­‐risk ventures, while flexible and ad hoc funding and program options for the other publicly funded post-­‐secondary institutions provide these institutions with more freedom to be creative and responsive with minimal risk. Concordia remains stressed for funding even among the Independent Academic Institutions as each of these institutions supplements their operational differential with constituency funding that in some cases exceed 30% of operational costs. That having been said, all of these institutions are struggling to maintain this level of donor funding, albeit with limited success. At Concordia approximately 2% of funding comes from its donor constituency, with only .4% coming from the church body with which Concordia is associated. Concordia is therefore almost completely dependent upon the Government of Alberta for its operations and overall funding, perhaps even more so than the fully publically funded institutions within Campus Alberta. Below is a graph of our 9 month revenue picture. Sources of
Revenue
Government of
Alberta Grants
Gifts Grants and
Deferred Capital
Grants
Tuition & Fees
Auxilliary
Enterprise &
Student Activities
Investment
Income
Miscellaneous
Total
2012/13
Budget $
2011/12 *
Actual $
%
2010/11
Budget $
%
11,820,752.00
47
8,755,083
44
233,600.00
1
530,222
3
11,184,761.00
44
8,795,994
44
1,921,718.00
8
1,572,915
8
75,000.00
0
550,299
135,100.00
1
25,370,931.00
100
11,696,638
2009/10
Actual $
%
%
46
11,899,449
48
5
597,536
2
40
10,107,303
41
1,843,789
7
1,825,068
7
0
117,714
0
57,201
0
209,925
1
217,829
1
254,365
1
20,414,438
100
100
24,740,922
100
1,135,734
10,167,149
25,178,853
∗
It bears reiteration that this column reflects the implantation of the March 31 year end, and so reflects a 9 month year! The actual 12 month figures correspond more closely to historic totals. Included in the above is $ 9,988.03 of constituency (i.e. church) donations. Concordia University College Annual Report 2011-­‐12 2011/12 -­‐ $20,414,438 Miscellaneous 1.03% Ancillary Enterprises 6.81% Investment income 2.70% Student TuiPon & Fees 43.98% OperaPons GiMs and Grants 0.64% Government of Alberta Grants 42.89% Designated fees, giMs, and grants 1.96% Concordia U niversity C ollege o f A lberta S ources o f R evenue DONOR SUPPORT 1. Concordia continues to seek to increase donor revenue in a very challenging philanthropic environment. We also maintain an aggressive recruitment strategy to increase student enrollment. Despite the setbacks outlined above, Concordia continues to maintain itself as an excellent small university serving all the citizens of Alberta. Concordia will maintain both standards and capacity within the limits imposed by curtailed operational funding, despite the fact that donations from community stakeholders continue to be a challenge, as demonstrated in the following table and chart: Development Summary for July 1, 2011 -­‐ March 31, 2012 Scholarships University Greatest Need Capital Expenditures Academic Divisions Community Services & Athletics Equipment TOTAL Column2 $95,517.72 $61,488.08 $8,625.00 $2,805.00 $64,156.73 $1,000.00 $233,592.53 25 26 Concordia University College Annual Report 2011-­‐12 Development Summary July 1, 2011-­‐March 31, 2012 0% Scholarships 28% 41% 1% 4% University Greatest Need Capital Expenditures 26% Academic Divisions Community Services & AthlePcs 2. What is evident is that Concordia’s capacity to evoke giving in all communities meets with limited success. While the above figures reflect a 9 month summary, the 12 month total only adds a further $121,734.56, whereby donation revenue contributes a mere 2% to the overall operational (and capital) budget. This is a serious concern, the cause of which may be found in Concordia’s actual transition into the public sphere, without being perceived as having done so by the public. 3. A key challenge Concordia has identified is tied to its inability to define itself in the minds of the student population and other key decision makers as to the kind of post-­‐secondary institution actually is, its place within the six sector structure notwithstanding. In the public eye, Concordia is predominantly seen as a faith based Lutheran church related school; in the church community, Concordia is seen as a public institution with a patina of faith elements that do not qualify it as a fully Christian university. While the truth is somewhere in between, it is precisely this “in between” state that creates the challenge on the recruiting and the funding front. To say that Concordia is a “Christian University but not a university for Christians Only” is true in fact, but difficult to parse in the minds of those seeking to make a choice for their post-­‐secondary education. It is also confusing to those who contribute to Concordia’s operations and capital maintenance and growth. We believe that Concordia, in dialogue with AEAE, its immediate constituency, as well as key stakeholders and post-­‐secondary partners, will have to re-­‐evaluate its place within Campus Alberta if it is going to be able to sustain its operations as a quality smaller university in Alberta in the future. 4. The above considerations are of special urgency as Concordia has reason to fear a further erosion of enrollment due to demographic trends and program duplication. Concordia faces continued enrollment pressure as a result of the creation of new learning opportunities at Grant MacEwan University and expanded advanced education learning space throughout the capital region. Concordia University College Annual Report 2011-­‐12 27 Concordia developed and was initially granted the opportunity to deliver degrees in Arts, Science and Management subject to a comprehensive system review and quality assessment process in the early 1980’s.This process has been maintained for the past thirty years, and students in Alberta have become the beneficiaries of broad access and affordable post-­‐
secondary programs at a variety of institutions. However, while the argument for access to specific over-­‐subscribed programs could be rightly made by MacEwan and other post-­‐
secondary institutions in Campus Alberta from time to time, not all programs faced such challenges. Consequently, while Concordia had and continues to have significant capacity in a variety of degree programs, AEAE maintains and continues to add seats at a variety of institutions without exploring the possibility of closer cooperation and integration to avoid duplication. Despite suffering from the collateral damage such decisions have occasioned, Concordia hopes that it can become a means and exemplar of how system coordination can manifest itself effectively by means of collaborations at multiple levels within Campus Alberta. Concordia’s challenge will be to persevere in its operations should the current trend in enrollment decline continue. Furthermore, while in the past declines were met by a rebalancing within the system overall, Concordia is becoming less optimistic that an adjustment and new equilibrium is probable in the near future. Stability in enrollments at Concordia will likely only be achieved by a successful Internationalization strategy in combination with more collaborative engagement with institutions within Campus Alberta. Concordia will continue to aggressively market what Concordia has to offer in more cost-­‐effective ways. Furthermore, Concordia fully understands that the goal of the Minister is to provide the greatest benefit and to enhance learning opportunities to students in the post-­‐secondary sector, and that all of these initiatives, whether at MacEwan or at Concordia, will ultimately serve to strengthen the qualifications and productivity of Alberta’s post-­‐secondary graduates. 5. Finding needed capital dollars for infrastructure, technology and access initiatives is another challenge because Concordia does not enjoy the same benefits with respect to capital funding that are taken for granted by the public post-­‐secondary institutions. Concordia must be creative in the investigation of initiatives that will enable Concordia to attain competitive standing with those institutions that can boast of newly constructed or fully refurbished facilities. Improved public transit access to Concordia, in conjunction with initiatives that include Northlands, is a necessary component in making Concordia readily accessible to post-­‐
secondary students in a manner already enjoyed by students attending the University of Alberta and the downtown campus of Grant MacEwan University (not to mention the students of NAIT, with the anticipated LRT extension in the future). The challenge to improve facilities and accessibility must be faced deliberately and with vision so as to obviate the risk of leaving Concordia on the margins of the post-­‐secondary educational map in Edmonton. While extending into the next fiscal year, this concern is being currently addressed with a decision by ETS to shuttle students from the Northlands LRT station to Concordia for the next two years. 6. With the certification of Concordia’s Faculty Association as a certified bargaining unit under the Alberta Labour Relations Code, Concordia faces two challenges: finding the human 28 Concordia University College Annual Report 2011-­‐12 resources (on both sides of the table) to negotiate a collective agreement that embraces mutual gains and benefits, and to find the fiscal resources to obtain the needed advice so as not to compromise the capacity of Concordia to remain a nimble and responsive institution within the Campus Alberta system. 7. Concordia remains hamstrung by its inability to meet one of the most crucial aspects of our ability to serve local and international students: inadequate and insufficient residence space. As Concordia has no access to credit outside of private banking arrangements, currently with BMO, and as the extent of capital liabilities precludes any further borrowing, Concordia will not be able to offer housing for rural Albertans and international students wishing to study at a size appropriate university for several decades. Access to credit and funding for housing will therefore be again a high priority in the coming year. EFFECTIVENESS WITH WHICH CHALLENGES WERE APPROACHED 1. The key challenge to Concordia’s operations remains uncertainty in enrollments. Anticipating the increase in program offerings at other post-­‐secondary institutions, Concordia expended a proportionately large number of resources in the development of an extensive marketing campaign some years ago. 2. Concordia has developed a number of comprehensive initiatives, among them a systematic Internationalization strategy. To that end, Concordia has engaged Dr. Manfred Zeuch, a highly skilled and motivated VP International, to develop, implement, and carry forth the internationalization strategy approved by the Board of Governors. Initial indications are that this strategy will have a significant ameliorating effect on our enrolments overall. 3. As already stated elsewhere in this document, under the guidance and with the consultation of Noel-­‐Levitz, new recruitment and retention strategies have been developed and implemented. 4. Stable debt servicing for capital improvements remains in place, and capitalization is well managed as it relates to deferred and future maintenance. Concordia believes that the overall economic picture with respect to Concordia’s current physical plant was positive during the past fiscal year. IMPACT OF ASSUMPTIONS ON PERFORMANCE Concordia understands the necessity of strategic planning and a clearly articulated business plan which establishes the parameters of its operations in the foreseeable future. 1.
2.
All growth at Concordia has been carefully monitored with respect to the capacity of the institution to meet the desire and needs of its students and the realization of learning opportunities. Guidelines provided by the Campus Alberta Quality Council in conjunction with Alberta Advanced Education and Technology have provided helpful reference points in the planning process for all degree and professional programs. As a result, Concordia has achieved deliberate and qualitative program growth that is sustainable. 3.
4.
5.
Concordia University College Annual Report 2011-­‐12 29 The Roles and Mandates Policy Framework for Alberta’s Publicly Funded Advanced Education System that AET has developed the Alberta Access Planning Framework (AAPF) remains the reference-­‐point of the government’s priorities. In its Comprehensive Institutional Plan (CIP), Concordia has clearly demonstrated the alignment of its program planning initiatives with goals of AET articulated in AAPF documents. Concordia’s major difficulty with respect to the formulation of assumptions in its business planning efforts relates to shifting external conditions, exacerbated by the inability to effect the nomenclature changes that we believe have a direct impact on enrollment growth. The function of Concordia’s CIP is therefore to plan for contingencies that an ever-­‐changing educational environment brings upon Concordia’s operations as a post-­‐secondary institution, where the Annual Report reflects upon the validity of the assumptions that informed the CIP. Institutionally, Concordia seeks to manage its affairs in a way that best serves students by providing core and innovative programs, as well as options and choices that facilitate the completion of degree programs in the time specified in the university calendar. G. SIGNIFICANT CHANGES OPERATING EFFICIENCY A number of new initiatives spearheaded by the Concordia Tomorrow project and further consultation with Noel-­‐Levitz were undertaken in 2011-­‐2012 to improve overall operations at Concordia. 1. Concordia appointed a new VP Academic who, as a change agent, sought to bring significant improvements to the operations of the academic and student service areas of Concordia. The latter was his special focus, as student service needs continue to be identified as a key pressure point at Concordia. 2. A Director of Student Life and Learning was appointed to oversee and direct the special needs, accommodation, and overall student life experience at Concordia. In that capacity the Director also oversees the Learning Strategists as well as coordinating the Learning Communities initiative that have been developed to assure student success and degree completion. 3. Enhancement of Information Technology services continues (e.g., on-­‐line payment of fees through chartered banks, on-­‐line purchase of books, on-­‐line payment for copy cards, migration of student email to Google, etc.). The Director of IT, in conjunction with his staff, has development of an integrated student portal and on-­‐line course selection and course registration system. 4. The voluntary retirement incentives program has been retained to assist faculty and staff in transitioning into retirement or other opportunities in areas where enrollment levels or workload may no longer require the need for the position. 30 Concordia University College Annual Report 2011-­‐12 CONSULTATIVE PROCESS A number of Concordia representatives are playing key roles in consultative processes, demonstrating not only the confidence placed in these individuals by peers, but the important role Concordia continues to play in key administrative and consultative areas of Campus Alberta. 1. Concordia’s Library Director, Dan Mirau, remains chair of the NEOS Library Consortium, a group of eighteen institutional members representing fifty academic, government, and hospital libraries in Alberta, including the University of Alberta. Furthermore, as noted above, he has also been elected by his peers to be Chair of the Alberta Library Directors Standing Committee. As Chair he will also serve on the Alberta Library (TAL) Executive Committee. 2. Concordia administrators continued to serve on Campus Alberta consultative councils and committees on behalf of IAIA. Dr. Jonathan Strand, Associate Vice-­‐President Academic, has just been appointed by the Minister of AEAE to serve as a member of ACAT. PROGRAM INITIATIVES 1. A number of programs have been under development, among them a Master in Public Health. The proposal is now before the Quality Council. 2. A proposal is being drafted for the implementation of an Alberta based (applied) doctorate in Psychology (PsyD) at the request of the Alberta College of Chartered Psychologists. This program has been under development for several years, with probable submission for system review in this academic year. 3. The Master in Information System Security Assurance Management degree was deferred to a September 2012 beginning due to budgetary constraints. (It has since begun operations). H. MAJOR OPERATIONAL GRANTS IN 2011-­‐2012 There were no major operational grants provided to Concordia during this fiscal year. I.
OPERATIONAL EFFICIENCIES In the fall of 2009 Concordia had embarked on the most ambitious restructuring project of its history, under the leadership of a university consulting firm “Leading-­‐By-­‐Design”. Many of these initiatives have been implemented while others are still pending. Furthermore, Concordia has also engaged Noel Levitz to evaluate and improve our recruitment and retention strategies. FINANCIAL HIGHLIGHTS The transition from a June 30th year end to one ending on March 31st creates some challenges in providing a report that tracks consistent with those of previous years. In fact, the 2011-­‐2012 budget Concordia University College Annual Report 2011-­‐12 31 was developed as a 12-­‐month budget, where the new year end constitutes the reset point for future reports. The figures in tables and the graphs drawn from the data will therefore appear somewhat skewed, though unsurprising in the circumstances. The statement of the “dip” in revenue/expenses is a necessary function of this realignment. The dip in revenue and expenses, while reported as a year-­‐
end figure, is, in fact, a third quarter number. As stated elsewhere, the “actual” year-­‐end is commensurate with that of the past two years, showing a modest surplus. As to operations, Concordia continues to contend with constricting revenue streams by seeking efficiencies. But it is our contention that Concordia has reached a point where efficiencies based on staff reductions through terminations and leaving vacant positions unfilled has reached the point of impeding the actual operation of Concordia. In short, Concordia believes it has reached an economy of scale that is at a bare minimum to maintain Concordia’s operations. An enhanced performance culture has also been built, with accountabilities raised to meet expectations of the various positions that manage Concordia on a day to day basis. The following table reflects the cost of operations during the last year, but does not tell the whole story, as Voluntary Retirement agreements and phased retirements are included in these figures. The conclusion of these agreements (most by the end of March 2013) will reveal a significantly reduced overall administrative cost (Table 4). General Administration Expenses Total 2012 (9 Month) 2011 2010 2009 $794,566 $ 1,008,387 20,414,438 25,054,596 $ 963,133 $ 1,033,659 24,372,914 24,575,761 Less Ancillary Expenses 1,003,201 1,284,173 1,198,210 1,326,702 Amortization 1,061,733 1,346,132 1,238,930 1,105,458 Net Operating Expenses 18,349,504 22,424,291 21,935,774 22,143,601 Percentage Administration 4.33% 4.50% 4.39% 4.67% Table 3: Administration expenses as percent of operating expenses fiscal years 2008 -­‐ 2011. For fiscal year 2011-­‐2012 tuition was on average increased by 2.8%. Concordia’s management requested a voluntary furlough from its Faculty and Staff during the last fiscal year, and both acceded to the request. Consequently, there was no increase in salary cost, though it was agreed to maintain the increment in benefit costs. Concordia participates in a multi-­‐employer defined benefit plan though Lutheran Church-­‐Canada (LCC). Benefit costs continue to increase at a rate well in excess of salary increases largely as a result unexpected increases to post-­‐retirement costs. Annual premiums to fund the defined benefit pension and post-­‐retirement health benefit plan for permanent employees increased from 15% of salary in 2009-­‐2010 to an actual 18.4% of salary in 2011-­‐2012. This is a 23% year over year increase in benefit cost. Current year contributions were $1.34 million. Escalating pension costs represent a serious threat to viability, and a determined effort will be made to negotiate alternative pension arrangements with staff. Relief is in sight as Concordia will switch to a defined contribution plan January 1, 2013, however, legacy costs resulting from underfunding of the existing defined benefit plan remain. LCC is providing some assistance in that they are willing to finance part of the deficit, enabling a longer amortization of the existing pension deficit. 32 Concordia University College Annual Report 2011-­‐12 Going forward, Concordia has been helped by the restoration of 2% government funding for the 2012-­‐
2013 fiscal year. Yet with declining tuition revenue, management continues in its quest to reduce operating expenses through internal rationalization. J. GOALS, EXPECTED OUTCOMES AND PERFORMANCE MEASURES ACTUAL PERFORMANCE AND ACHIEVEMENT What follows is a survey of the goals, expected outcomes, and performance measures that informed the writing of the Comprehensive Institutional Plan of 2011-­‐2015, which is implicitly referenced in this Annual Report. A key addition here is an evaluation of our University College Entrance Program that relates to AEAE’s priority of accessibility to under-­‐represented and aboriginal populations. THE OVERARCHING GOAL: LEADING IN LEARNING Concordia, in keeping with its mission, will continue to be an accessible and Open University that prepares graduates who will serve as dedicated leaders, responsible citizens, and competent professionals. In order to accomplish this, Concordia's educational objectives in Arts and Science will continue to include the goal of engaging students in courses that challenge and develop their ability to read and listen critically, to write persuasively, and to speak with a confidence born of knowledge. Graduates in Education will continue to demonstrate the highest possible level of commitment to the teaching profession, while those in Professional Education will continue to become the kind of professionals who show leadership in their field. Finally, as Concordia continues to add graduate programs, it will uphold the importance of providing graduate education that engages students in creative and meaningful research and builds on, supports, and enlivens Concordia's research and undergraduate learning environment. RELATION TO THE MINISTRY'S STRATEGIC PRIORITIES This goal contributes to the Ministry's strategic priority in that it acknowledges that Alberta's future economic growth depends on a knowledgeable citizenry and a highly skilled workforce, which, in turn, requires a learning system that gives learners the opportunities and tools to succeed and excel. EXPECTED OUTCOMES AND MEASURES Concordia's graduates will continue to be among the most satisfied participants in government-­‐
administered Graduate Outcomes Surveys, and they will continue to rate highly the overall quality of their education and the quality of teaching they received. The employability of all graduates is expected to remain high as well. Those graduating from our UCEP program will find access to other post-­‐secondary opportunities; those from Arts, Science, and Management will be entering graduate programs in increasing numbers or be considered highly desirable candidates for employment as they enter the workforce. Those in the teaching profession will continue to score well above the norm in efficacy studies, while those in Environmental Health will continue to be considered among the best in their field as increasing numbers of them are invited to serve in governance roles for the Canadian Institute of Public Health Inspectors. Finally, graduates in Information Systems Security Management increasingly will become recognized as leaders in their field. Concordia University College Annual Report 2011-­‐12 STUDENT SATISFACTION The CIP of 2011-­‐2015 expected Concordia’s graduates to be among the most highly satisfied students while currently enrolled and subsequent to graduation. A number of surveys have established both as having a high degree of success. Globe and Mail Student Survey 2012 Overall Student Satisfaction Satisfaction with Quality of Teaching and Learning Satisfaction with Student-­‐Faculty Interaction Satisfaction with Class Size Satisfaction with Ease of Course Registration Satisfaction with Recreation & Athletics Satisfaction with Buildings and Facilities Satisfaction with Student Residences Satisfaction with Libraries Satisfaction with Campus Technology Satisfaction with Campus Atmosphere Satisfaction with Career Preparation Satisfaction with Environmental Commitment Satisfaction with Town/City Satisfaction with Research Opportunities Satisfaction with Academic Counseling Satisfaction with Work-­‐Play Balance Satisfaction with Instructor’s Teaching Style Satisfaction with Reputation with Employers A -­‐ A A A+ B B-­‐ B+ C-­‐ A-­‐ B+ A B+ B B B B B+ A-­‐ B+ SATISFACTION OF STUDENTS Concordia’s students continue to be satisfied with their experience on campus. Among very small universities (enrolment under 4,000), Concordia ranked 5th nationally in terms of most satisfied students. Aside from the Globe and Mail results, Concordia also participated this year in the Canadian University Survey Consortium which focused on graduating students. Overall, students express high satisfaction on their campus experiences in general, and in particular rate their classroom instruction, participation in classroom discussions, personal interactions with faculty, and interactions with other students as significantly contributing to their growth and development. USC (CANADIAN UNIVERSITY CONSORTIUM) 201 ALL UNDERGRADUATE STUDENT SURVEY-­‐ SELECTED RESULTS In 2012, the survey asked all graduating students for their overall perceptions of their university experience. As shown in the three columns below: 1. All students surveyed: overall there were approximately 15,000 students from 37 participating institutions were surveyed; 2. Other Group 1 universities: these universities that offer primarily undergraduate studies and that have smaller student populations; and 33 34 Concordia University College Annual Report 2011-­‐12 3.
Concordia’s results. Experiences contributed very much to growth and development All Students Surveyed Other Group 1 Universities* Concordia University College of Alberta Classroom instruction Participation in classroom discussions Written communication skills Oral communication 60% 43% 72% 52% 77% 67% 66% 61% 74% 71% 81% 82% Thinking logically and analytically 71% 77% 83% Commitment to lifelong learning 58% 69% 77% Satisfaction with Faculty All Students Surveyed Other Group 1 Universities* Concordia University College of Alberta Most of my professors communicated well in their teaching Some professors at this university have had a major positive influence on my academic career Most professors’ teaching was intellectually stimulating Most of my professors provided useful feedback on my academic performance Overall satisfaction with quality of teaching 85% 93% 97% 85% 91% 93% 80% 88% 91% 72% 86% 97% All Students Surveyed Other Group 1 Universities* Concordia University College of Alberta Agree Strongly Agree Disagree Disagree Strongly 31% 56% 10% 2% 44% 49% 5% 1% 60% 37% 2% 1% *Group 1 Universities are universities that offer primarily undergraduate studies and that have smaller student populations Concordia University College Annual Report 2011-­‐12 35 AET GRADUATE OUTCOMES 127 Concordia students who graduated in 2008 were surveyed in the Alberta Education and Technology Graduate Outcomes Survey. The graduates were asked to reflect on their satisfaction with their education. The following table shows that these numbers are comparable with current student levels and again reinforces that satisfaction levels remain at the highest levels for Concordia students and Graduates. Satisfaction with overall quality of your education 96.1% Satisfaction with quality of teaching at your institution 97.6% Would recommend the same program to someone else 92.9% Would recommend someone that they should attend 97.6% SUCCESS OF GRADUATES Not only are Concordia’s current students satisfied with their education and experience, but our graduates are doing well. Our Financial Aid and Awards office reports that a number of students graduating this year with SSHRC and NSERC awards are now studying at the University of Victoria and the University of Alberta. Others in graduate school continue in programs at the University of Alberta, University of Saskatchewan, and Yorkville University. Noteworthy is the significant number of graduates getting into Medicine and Master degree programs given the size of our 4-­‐year Bachelor of Science undergraduate degree program. According to the Graduate Outcomes Survey, 80.3% of students stated they were employed at the time of the survey and 63% stated they had been employed for more than one year. Of the students sampled 34.7% stated that they are currently in school full or part time. 18% stated that their current studies will lead to a graduate degree or a professional degree such as medicine or law. STUDENT AND GRADUATE SKILL DEVELOPMENT Current students believe that they are developing skills through their Concordia Education. The following table summarizes data from last year’s CUSC Survey and shows the percentage of students who feel that their Concordia education contributes much or very much to the skillsets listed. Written communication skills Oral communication skills Cooperative interaction in groups Thinking logically and analytically Identifying and solving problems Effective study and learning skills All Students 58% Group 1* 61% Concordia Students 67% 47% 49% 58% 47% 49% 50% 61% 63% 67% 53% 54% 56% 51% 53% 58% 36 Concordia University College Annual Report 2011-­‐12 Skills for planning and completing projects Ability to understand abstract reasoning Working independently Persistence with difficult tasks General skills and knowledge relevant for employment Living in and international word Appreciation of the arts Personal time management skills Self-­‐confidence 51% 53% 57% 47% 48% 53% 58% 59% 66% 50% 51% 56% 45% 47% 48% 34% 34% 36% 30% 50% 33% 52% 41% 53% 46% 49% 55% Interpersonal skills 44% 47% 54% Moral and ethical 43% 47% 52% development Leadership skills 39% 42% 47% Spiritual development 23% 28% 40% *Group 1 Universities are universities that offer primarily undergraduate studies and that have smaller student populations Graduates also felt that their Concordia education prepared them well for success. On the AET Graduate Outcomes Survey, students were asked, “to what extent did the program you graduated from provide you with the following benefit:” Great extent (3 or higher) Skills for a particular 83.5% job Knowledge of a 99.2% particular field Opportunity to 96.8% improve yourself Chances to improve 87.4% income A desire to continue 95.3% learning Improved 93.7% employment opportunities Effectively solve 93.7% problems Not at all (2 and lower) 16% Not Applicable 0.08% 0 0.2% 1.6% 9.5% 3.1% 4.7% 0 5.5% 1.6% 5.5% 0.8% Effectively speak in public Improve you writing skills Resolve conflicts 89.7% 8.7% 1.6% 94.5% 5.5% 0 85.8% 11.8% 2.4% 4% Concordia University College Annual Report 2011-­‐12 Learn independently Become self-­‐
confident Develop leadership skills Think creatively 96.8% 92.3% 2.4% 3.9% 0.8% 3.9% 89.8% 7.1% 3.1% 92.1% 7.1% 0.8% Develop awareness of ethical issues Develop awareness of political and social issues Appreciate other cultures Develop work related computer skills Develop research skills Develop mathematical skills Develop interpersonal skills Work independently Work well with others Develop time management skills Analyze information 90.5% 7.9% 1.6% 105% 14.9% 2.4% 87.4% 7.9% 4.7% 78.7% 15.7% 5.5% 91.3% 3.1% 0.8% 62.9% 26.7% 10.2% 96.8% 2.3% 0.8% 95.3% 97.6% 3.1% 2.3% 0.8% 0 91.3% 7.9% 0.8% 97.6% 2.4% 0 REPORT ON UNIVERSITY COLLEGE ENTRANCE PROGRAM, WITH SPECIAL REFERENCE TO ABORIGINAL STUDENTS The following is fundamentally a repetition of data from the previous annual report, as the data provides little in statistical deviation. In 1985 Concordia was one of the first post-­‐secondary institutions in Canada to actively engage in providing access points for students who had insufficient preparation for university, focusing especially on aboriginal students. Below are a number of charts that reflect positively on the effort undertaken by Concordia with the support of AET. The 10-­‐year summary below represents a 71% successful completion rate of students after enrolment in the program. 37 38 Concordia University College Annual Report 2011-­‐12 12 YEAR ENROLLMENT HISTORY FOR UCEP TOTAL STUDENTS ADMITTED 2000-­‐
2012 1372 TOTAL ABORIGINAL ADMITTED 597 TOTAL MINORITY ADMITTED 167 TOTAL OTHER ADMITTED 557 TOTAL COMPLETED 978 While the above table provides a 12-­‐year summary, during the entire 37 years of its operation, the UCEP program has had over 2,572 graduates, among whom 1004 were Aboriginal, 194 from Visible Minorities, and a further 1, 374 from the general population. Overall, Concordia continues to address the Minister’s desire to provide access to post-­‐secondary choices by the innovative programs it has designed and continues to offer. It is this that has given Concordia a global reputation, as evidenced by the subscription of international students to Concordia’s MISSM degree program. Concordia follows up with students to see where they are going, but only for those on AEI funding and only for six months. While we do not keep long-­‐term data, anecdotal evidence indicates that our students go to the U of A, MacEwan, NAIT, and Norquest, or stay at Concordia. A few go to schools outside the province (British Columbia and Saskatchewan in particular), but we have had inquiries for transcripts to be sent to post-­‐secondary schools in the United States and as far away as Vietnam. Our students enter a wide variety of programs including General Arts, Education, General Science, Engineering, Nursing, and a number of Trades and Technical programs. Considerable students have entered helping professions, especially Social Work. A number of Aboriginal students are working in social work and community development fields with their bands. One graduate completed post-­‐secondary and went on to work for the United Nations in Lebanon on an International project working with war refugees. Overall, Concordia has had tremendous success with these populations. Enrollment increased in 2009-­‐
2010 because of the downturn in the economy after the boom years, but has decreased since as First Nations Bands have again sought to have their students pursue other options. Also, other choices, coupled with an upturn in the economy, have reduced the overall participation number in the last two years. Table 5 illustrates the completion rates of the UCEP program over the past 4 years. Concordia is consistently engaged in improving success rates in all of its programs, and has expended significant resources in order to provide the aid needed to achieve student completion rates and ensure future success in post-­‐secondary education. Concordia University College Annual Report 2011-­‐12 Table 5 S tudent C ompletion R ates
Student Comple\on of UCEP Program 35 Number of Graduates 30 25 20 15 10 5 0 2008-­‐09 2009-­‐10 2010-­‐11 2011-­‐12 Aboriginal 22 30 30 32 Visible Minority 8 15 12 7 Other 12 29 22 18 GOAL 1: A GLOBALLY RECOGNIZED, QUALITY ADVANCED LEARNING SYSTEM MEETS THE NEEDS OF ALBERTA Performance Targets In its CIP for 2011-­‐2015 Concordia indicated a willingness to be fully engaged in aligning learners with labour market demand in such fields as business management, education, environmental health, and information technology, and to be strategically placed to address the shortage of health inspectors in the province and nationally. Currently under external review is Concordia’s proposal for an on-­‐line Master in Public Health, while another Master of Information Systems Assurance Management has received Ministerial approval. Concurrently, Concordia seeks to serve more Arts, Science, and ACHIEVEMENT IN RELATION TO PERFORMANCE TARGETS •
•
•
•
•
•
•
Concordia’s Bachelor of Education (After Degree) celebrates a consistent superior reputation for program design, delivery, and consequently the quality of graduates placed throughout Alberta and British Columbia. In a survey of 2009 graduates, 48 out of 61 students responded. Of these, 42 (88% of respondents) were employed and expressed high satisfaction with their training. Concordia’s graduates from the Bachelor of Environmental Health (After Degree) consistently outperform graduates from other Canadian universities in the written and oral certification exams for Health Inspectors. Concordia remains committed to this core standard of breadth and depth in its programs through maintaining Concordia-­‐based undergraduate core requirements and by adhering to CAQC Expectations for Design and Structure of Undergraduate Degrees and for all degrees, both undergraduate and graduate, the requirements outlined in the Canadian Degree Qualifications Framework. Concordia remains committed to continuing to articulate agreements with other post-­‐secondary partners and to increasing learner choice. Concordia noted that it would seek to enhance distance delivery methods to provide greater opportunity for students to obtain their education off-­‐site. Concordia noted the intention of enhancing its existing Applied Psychology program to provide greater opportunities for graduates in the labour market. Efforts to enhance our MISSM program have led to the creation of a second Master’s proposal which builds upon the strengths of MISSM. In 2009 Concordia proposed a new program entitled Master of Information System Assurance Management, which has now begun in the Fall of 2012. The current program consists of a 90% international student cohort. 39 40 Concordia University College Annual Report 2011-­‐12 Management students, to maintain at full capacity cohort-­‐based programs like Education and Environmental Health, to expand its Master of Information Systems Security Management (MISSM), and increase enrollment success among aboriginal students. •
•
Concordia, as indicated in its recent CIP, has submitted a Master of Public Health proposal to AEAE. Building on our successful BEH (AD), this is a field-­‐
focused degree which will meet the increasing demands of working professionals for an enhanced credential and will rely in part on distance delivery capabilities already in place at Concordia. Concordia is completing an internal review of its existing Psychology (Applied Emphasis) degree program and anticipates recommendations for expanding completion routes for students. In recent years the program added a Forensic minor in response to market demand, and, unique to Canada, an Animal Assisted Therapy Program. GOAL 2: A L EARNER -­‐C ENTERED , A FFORDABLE A DVANCED L EARNING S YSTEM A CCESSIBLE TO A LBERTANS Performance Targets ACHIEVEMENT IN RELATION TO PERFORMANCE TARGETS Concordia, in the 2011-­‐2015 CIP, recommitted itself to be a Learner-­‐
Centered Accessible Institution •
Concordia following through on its Concordia Tomorrow projects which will meet the following priorities: •
•
•
•
•
•
•
Be student-­‐centered Be of sufficient size to maximize efficiencies Have superior program designs and program delivery Seek out and initiate collaborations Encourage and support research Provide a foundation of faith and intellectual integrity Establish, maintain, and review administrative and policy structures to ensure best practices and alignment with Campus Alberta •
•
•
•
•
•
•
•
Concordia students continue to receive over $1,000,000 in scholarships and bursaries that are funded by the donations of key stakeholders and from within the operational resources of the institution. Despite financial pressures, Concordia voluntarily restricted its tuition increases to those of other publicly funded post-­‐
secondary institutions in Alberta. Concordia, through its University Academic Council, is reviewing the applicability of a Research Skill Development Framework developed through the University of Adelaide as a means of further accessing this aspect of Concordia’s curriculum offerings. Students in all programs are to be assisted in developing research skills that reflect a true nexus of teaching and research skill development that builds increasingly sophisticated levels of ability. Concordia established the objective of continuing to prepare highly satisfied graduates who have been challenged by the curriculum, yet who can obtain help from engaged Academic Strategists. Concordia continues with its program review policy to evaluate course content as meeting learner demand. Significant efforts were made to increase recruiting efforts in aboriginal communities, and, likely due to predicted economic hardships, Concordia saw a leveling of enrollment in the UCEP program in the fall of 2010. Concordia has implemented a dynamic and strategic Internationalization strategy that is finding considerable success The Concordia Tomorrow initiative changed various administrative, academic, and policy structures in order to ensure best practices locally and nationally. Concordia University College Annual Report 2011-­‐12 GOAL 2: Continued Performance Targets ACHIEVEMENT IN RELATION TO PERFORMANCE TARGETS Concordia uses every opportunity available to it to encourage the view that the independent sector, and this institution within it, is a valuable member of Campus Alberta, providing high quality learning experiences and one-­‐of-­‐a-­‐kind programs to Albertans, and therefore deserves to be more fully integrated and funded. To date this goal has NOT been achieved. Concordia maintained affordable tuition levels at the expense of staffing in order to maintain accessibility to students and maintain a balanced budget. •
•
C ONCORDIA ’ S C OMMITMENT TO R ESEARCH AND I NNOVATION Performance Targets ACHIEVEMENT IN RELATION TO PERFORMANCE TARGETS Concordia’s goal in its CIP for 2011-­‐2015 was to •
continue building its capacity for research and innovation, noting that the addition of Graduate Programs made this imperative. Concordia planned to further enhance its valuable expertise in professional programs by working with stakeholders and partners to continue to produce graduates who are on the cutting edge of the •
newest innovations in their fields, and to continue offering that expertise to graduating professionals •
once they are operating in the workforce. Also identified as a goal by Concordia was that all students would be assisted and exposed through the curriculum to a gradually enhanced research skill development nexus. Concordia continues to support the research capacity of its faculty with internally generated research funding, with regular research leave opportunities, with the administrative support of the Dean of Research and Graduate Studies Office, by administering Tri-­‐Council research awards, and through its support for disseminating research results. Concordia created and approved a new academic freedom statement. For each of its four professional programs, Concordia consults regularly with advisory committees of high profile individuals who are all well-­‐placed in community, industry, and the professions. This effort ensures that Concordia remains aware of innovation and is able to capture value for its students and Albertans generally. 41 42 Concordia University College Annual Report 2011-­‐12 MANAGEMENT SUMMARY The following is a summary of the progress we are making in meeting the listed opportunities and challenges during the last fiscal year: CHALLENGES: Ø
Ø
Ø
Ø
Ø
maintaining consistent enrollments maintaining adequate cash flows maintaining affordable salaries and benefits for faculty and staff addressing the rising cost of operational overhead addressing the infrastructure deficits OPPORTUNITIES: Ø a third new Master’s program that had been approved at Concordia and implemented Ø a fourth Master’s has been submitted for System Review Ø the rolling out of the Concordia Tomorrow strategy, implementation of Noel-­‐Levitz recommendations Ø implementation of Internationalization strategy MAINTAINING CONSISTENT ENROLLMENT From all reports, the establishment of achievable enrollment targets is a problem unique to Concordia. While other institutions in the capital region boast of increased enrollments and turn-­‐aways, Concordia remains undersubscribed. Some of the contributing factors have been discussed in the report above. Others are less tangible. Yet while Concordia’s overall program enrollment increased slightly for 2010-­‐2011, using LERS actual counts, it decreased again during the last year, and appears to be lower in the current year as well. Concordia had anticipated relatively flat enrollments when budgeting tuition revenue for the 2011-­‐2012 academic year, and so implemented the voluntary 6 day furlough for the year. This proved to be a prudent move, as revenue barely kept pace with expenses. The enrollment in our Bachelor of Management continues to languish in a field of competing programs while Arts and Science enrollment rose just slightly again above the previous year’s level. Concordia is concerned that the increased offerings in Science degree programs in the coming autumn, coupled with lower tuition fees at the fully funded institutions, will continue to erode our capacity to attract and retain students in the sciences. These factors are troubling and challenging for Concordia, despite the 2% increase in operational funding announced in the February provincial budget for the 2012-­‐
2013 fiscal year. MAINTAINING ADEQUATE CASH FLOWS Concordia is almost completely reliant upon tuition revenue and government funding for its daily operations. During this reporting year, no substantial increase in revenue was realized, either through government grants or through tuition revenue. Instead, reductions in overhead in conjunction with the mentioned furlough permitted the cash-­‐flow needed to keep operations at Concordia balanced. While prudent management of existing resources has served to maintain a stable fiscal position, Concordia faces major constrictions and limitations in advancing the goals set before it by AEAE if the gap in the Concordia University College Annual Report 2011-­‐12 level of funding between the partially funded and fully funded institutions is not narrowed. It is therefore our sincere hope that Concordia’s ability to provide the kind of education that has been so highly valued by our students will be maintained by the Ministry with its continued helpful and much appreciated support. It is noteworthy that in the last year of supported funding, Concordia managed its resources effectively and efficiently. MAINTAINING AFFORDABLE SALARIES AND BENEFITS FOR FACULTY AND STAFF The 2011-­‐2012 budget again limited salaries to an inflationary adjustment of 1% plus movement on the existing salary grids, an increase that was off-­‐set by the furlough. While Concordia would like to close the rather significant gap between Concordia salaries and those in the public post-­‐secondary sector (reflected in the steep rise in operational costs illustrated in the graph of Figure 1), it appears that our revenue constraints, coupled with significant benefit liabilities, will anything but incremental grid movement difficult in the foreseeable future. We are fortunate that we have a dedicated staff at Concordia that remains committed to the institution and its mission, though this by no means diminishes the need to recruit and retain strong faculty and staff members for the future. At the same time, the cost of benefits is taxing the institution’s ability to maintain an adequate cash flow needed to sustain its obligations to existing benefit plan costs. Extensive consultation was underway during the 2011-­‐2012 academic year, and continues to date, in order to mitigate the future risk associated with the participation in the current plan. Already mentioned is the termination of the current Defined Benefit Plan and its replacement with a Defined Contribution Plan, though the benefits of this transition will not be realized for some years in the future. F IGURE 1 R EVENUE AND E XPENSE T ABLE 26,000,000 24,000,000 22,000,000 20,000,000 18,000,000 Revenue 16,000,000 Expenses 14,000,000 10,000,000 1995 -­‐ 1996 1996 -­‐ 1997 1997 -­‐ 1998 1998 -­‐ 1999 1999 -­‐ 2000 2000 -­‐ 2001 2001 -­‐ 2002 2002 -­‐ 2003 2003 -­‐ 2004 2004 -­‐ 2005 2005 -­‐ 2006 2006 -­‐ 2007 2007 -­‐ 2008 2008 -­‐ 2009 2009 -­‐ 2010 2010 -­‐ 2011 2011 -­‐ 2012 12,000,000 Implicit in this graph is that benefit costs are taking a relatively disproportionate share of compensation costs. Concordia therefore began to take steps to address these costs, first by attaining a voting position on the Pension Plan Board of Managers. Furthermore, Concordia, along with the Pension Plan management board of Lutheran Church-­‐Canada, has been investigating options that will 43 44 Concordia University College Annual Report 2011-­‐12 address a 17% solvency shortfall while addressing current and future obligations. While Concordia was able to address what was a nearly $425,000 increase in benefit cost over the previous year, estimates for the present academic year proved too pessimistic; total benefit costs rose “only” some $300,000 for the 2010-­‐2011 academic year. Yet even so, this is clearly an unsustainable scenario, which Concordia is anxious to resolve; beyond the previously mentioned initiatives, it is seeking external consultation. The two charts below illustrate the depth of the liability relative to compensation that Concordia faces, with Figure 2 providing an illustration of the rise of benefit costs, and Figure 3 relating overall salary to benefit costs. F IGURE 2 B ENEFIT C OSTS Benefit Costs 3,461,315 3,254,852 2,961,852 2,536,236 2008-­‐09 Actual 2,400,009 2009-­‐10 Actual 2010-­‐11 Actual 2011-­‐12 Actual 2012-­‐13 Budget Concordia University College Annual Report 2011-­‐12 45 F IGURE 3 S ALARY AND B ENEFITS 19,000,000 3,254,852 3,461,315 17,000,000 2,536,236 2,961,852 15,000,000 13,739,146 13,000,000 11,000,000 14,128,398 2,400,009 14,235907.91 13,914,538 10,472,082.00 9,000,000 7,000,000 2008-­‐09 Actual 2009-­‐10 Actual 2010-­‐11 Actual Salary 2011/12 Actual 2012/13 Budget Benefits MEETING RISING INFRASTRUCTURE COSTS Since last year, Concordia’s fiscal obligations have been reduced by nearly $1 million dollars through a reallocation of resources and sale of some property. Consequently, our debt to equity ratio remains strong. At the same time, all but the most rudimentary maintenance is possible in the face of a lack of capital funding through limited donations and the reduction of student facility fee revenue that is tied immediately to enrollments. DEVELOPMENT OF A NEW MARKETING PLAN Concordia, with the help of Noel-­‐Levitz, and some expert internal staffing with a tremendously competent Director of Marketing, in conjunction with an in-­‐house graphic designer and another technologically superior videographer and writer has enabled Concordia to do much with relatively little. Great success has been demonstrated by the consistency the in-­‐house approach brings, as well as cost-­‐savings and efficiency. 46 Concordia University College Annual Report 2011-­‐12 SECTOR ACCESS TO THE PROPOSED COMMON APPLICATION SYSTEM (APAS) Concordia’s inclusion in the APAS system is crucially important. With the resources already provided, coupled with in-­‐house expertise and AET assistance, Concordia has obtained full standing on the Apply Alberta site. MASTERS PROGRAMS AT CONCORDIA Concordia continues to celebrate the success of its Master’s programs, which have reached their enrollment targets within the anticipated time frame outlined in the initial proposals. As these programs contribute to one of the primary goals of AEAE, they have also benefitted from the support of the Ministry, and have emboldened Concordia to pursue the development of further master’s degrees in related fields. With the Master in Information System Assurance Management having found approval, Concordia is further highlighted as a university that can deliver graduate courses in niche areas. This is also why we have submitted a fourth Master’s degree in Public Health and are developing a proposal for a PsyD. DEVELOPMENT AND IMPLEMENTATION OF THE CONCORDIA TOMORROW STRATEGY Concordia embarked on a deliberate and proactive restructuring through the “Concordia Tomorrow” initiative. Concordia Tomorrow constitutes a strategy that is as long term as it is all encompassing. The 2011-­‐2012 academic year saw further implementation of some of the directional objectives of the Concordia Tomorrow initiative, including the implementation of our all-­‐important internationalization strategy. SUMMARY OF INSTITUTIONAL PERFORMANCE Concordia continues to excel as a post-­‐secondary institution in those areas in which it has been mandated to contribute to the education of students. Enrollments in the Arts have stabilized, and in conjunction with the other academic programs, Concordia’s enrollment made a modest recovery during this reporting year. Concordia’s first successful master’s program, the Master of Information Systems Security Management, has maintained its target FLE in terms of LERS actual numbers. Concordia is not certain whether the “one number” funding formula that is now the AEAE grant addresses this milestone, but it would be instructive if confirmation as to the success of this program might be received. The Bachelor of Management, while still exceeding originally forecast multi-­‐year target numbers, has unfortunately stalled at a much lower level than we had hoped. The more recent enrollment of 173 FLEs that was in fact reached after three years has dropped significantly to 119.075 FLEs according to LERS actual figures. Yet all told, the total head-­‐count (over two semesters) remains at 273 students in the program. Nevertheless, Concordia’s success as a post-­‐secondary institution is reflected first and foremost in terms of student satisfaction. Again, the Globe and Mail student survey in which Concordia participated ranked Concordia among the top of smaller (enrollment under 2000) institutions across Canada. Also significant was the CUSC survey of first-­‐year students at Concordia, which demonstrates Concordia’s commitment and success at providing a welcoming and yet challenging learning environment. Among the 55 universities ranked, Concordia ranks in the top 5 for student Concordia University College Annual Report 2011-­‐12 47 satisfaction in Canada, a fact also highlighted by Macleans magazine in March of 2011. Unhappily, due to the limitations of Concordia’s advertising budget, we were unable to capitalize adequately on these data. We suspect that not even AEAE was aware of this accomplishment. ONGOING INITIATIVES Concordia’s “Concordia Tomorrow” initiative, in conjunction with its Comprehensive Institutional Plan serves as a blueprint for the direction of the institution within the overall framework of the mandates specified by Alberta Advanced Education and Technology. Among the ongoing initiatives: • The President continues to submit regular reports to the Board of Governors. These reports are summaries of policy reviews and procedures, as well as evaluations of external and internal conditions that may have an impact on Concordia’s ability to achieve its goals. •
The Board is charged with the responsibility of approving any changes that will have an effect on the future performance of Concordia. • The various teams of “Concordia Tomorrow,” such as the Executive Leadership Team and the Project Planning and Assessment Team, continued to review every aspect of Concordia’s operations, evaluating progress in the achieving of planning goals while also generating new ones. • The Deans’ and Directors’ Council meets on a quarterly basis to reflect upon departmental achievements, the setting of new goals, strategies to achieve them, and the factors that may affect the desired results. This includes evaluating changes in government policy or the direction taken by other institutions within Campus Alberta. • To assist in its achievement of planning goals, Concordia continues to form useful partnerships with other institutions in Campus Alberta and with corporations and agencies in the broader community. • As a full member of the AUCC, Concordia remains apprised of developments occurring in other universities across the nation and throughout the world. • Concordia is actively engaged in increasing its public profile to become a university of first choice, highlighting the quality and diversity of its degree and professional programs via the branding and marketing strategies outlined above. In summary, Concordia is a university that fulfills its mandate within Campus Alberta and its calling to be the kind of institution that nourishes the life of the mind, where students learn who they are, what their gifts are, and how they can serve God and their neighbor in their occupations. Our faculty is dedicated to learning and is made up of individuals who want their students to learn well. For this reason Concordia is ranked by our students to be among the best universities in the country. Because our students learn how to think for themselves, they learn about their abilities, and they learn how these can be best used and applied. And that is the value of a university education: since we don’t even know what problems will arise tomorrow in a rapidly changing and uncertain world, our students are prepared to tackle today’s problems and are also equipped to grapple with those that will arise tomorrow. This kind of learning makes our graduates exceptional and valuable as they pursue their occupations and contribute with all the gifts they have received. Appendix A Audited Financial Statements Year Ended March 31, 2012 KPMG LLP
Chartered Accountants
10125 – 102 Street
Edmonton AB T5J 3V8
Canada
Telephone
Fax
Internet
(780) 429-7300
(780) 429-7379
www.kpmg.ca
INDEPENDENT AUDITORS’ REPORT
To the Board of Governors of Concordia University College of Alberta
We have audited the accompanying financial statements of Concordia University College of
Alberta, which comprise the statement of financial position as at March 31, 2012, the statements
of operations, changes in net assets and cash flows for the nine month period then ended, and
notes, comprising a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Canadian generally accepted accounting principles, and for such internal
control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, we consider internal control
relevant to the entity’s preparation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control.
An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity.
KPMG Canada provides services to KPMG LLP.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of
Concordia University College of Alberta as at March 31, 2012, and its results of operations, its
changes in net assets and its cash flows for the nine month period then ended in accordance with
Canadian generally accepted accounting principles.
Chartered Accountants
August 24, 2012
Edmonton, Canada
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Statement of Financial Position
March 31, 2012, with comparative figures for June 30, 2011
Assets
Current
Cash and cash equivalents
Investments (Note 3)
Accounts receivable
Bookstore inventory
Prepaid expenses
Capital assets (Note 4)
Total Assets
March 31, 2012
June 30, 2011
$
2,515,880
2,424,955
540,839
177,668
249,966
5,909,308
22,814,039
28,723,347
$
1,109,120
2,343,646
406,716
1,281,756
11,835
4,343
252,271
5,409,687
$
$
Liabilities and Net Assets
Current
Accounts payable and accrued liabilities (Note 6)
Deferred revenue (Note 7)
Specially designated funds (Note 8)
Demand loans (Note 9)
Current portion of capital leases (Note 10)
Current portion of capital loan (Note 11)
Current portion of term loan (Note 12)
$
Long Term
Capital leases (Note 10)
Capital loan (Note 11)
Term loan (Note 12)
Unamortized deferred capital contributions (Note 14)
Total Liabilities
Net Assets
Total Liabilities and Net Assets
$
Page 1
9,503
7,378,315
5,453,760
12,841,578
18,251,265
10,472,082
28,723,347
$
$
396,280
1,651,143
401,740
295,810
218,690
2,963,663
23,625,491
26,589,154
1,045,918
1,361,510
343,262
1,428,052
49,141
4,342
240,533
4,472,758
6,245
12,760
7,567,942
5,604,173
13,191,120
17,663,878
8,925,276
26,589,154
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Statement of Operations
Nine month period ended March 31, 2012,
with comparative figures for the year ended June 30, 2011
Nine month
period ended
March 31, 2012
Year ended
June 30, 2011
$
$
Revenue
Gifts and grants
Government of Alberta Grants (Note 7)
Designated fees, gifts, and grants
Operations gifts and grants
Amortization of deferred capital contributions (Note 14)
8,755,083
226,789
130,764
172,669
9,285,305
Student tuition and fees, and other revenue
Student tuition and fees (Note 7)
Auxiliary enterprises and activities (Schedule 1)
Student activities
Investment income (Note 3)
Gain from sale of capital assets
Miscellaneous
Total revenue
11,696,638
278,884
164,200
177,493
12,317,215
8,795,994
1,389,749
183,166
5,182
545,117
209,925
11,129,133
20,414,438
10,709,307
1,605,174
211,614
117,714
1,162
216,667
12,861,638
25,178,853
7,716,199
8,301,412
1,003,201
465,231
1,185
332,451
17,819,679
2,594,759
1,061,733
1,533,026
10,564,154
10,875,483
1,284,173
513,511
906
470,237
23,708,464
1,470,389
1,346,132
124,257
Expenses
Academic programs (Schedule 2)
Support programs (Schedule 2)
Auxiliary enterprises and activities (Schedule 1)
Student financial aid
Interest
Interest on long term liabilities
Excess revenue over expenses from operations
Amortization of capital assets
Excess of revenue over expenses
Page 2
$
$
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Statement of Changes in Net Assets
Nine month period ended March 31, 2012,
with comparative figures for the year ended June 30, 2011
Net Assets
Available for
Operations
Net assets (deficiency), beginning of period
Excess (deficiency) of revenue over expenses
Endowment contributions
$(1,054,152)
1,876,973
-
Page 3
Transfers
For internally restricted purposes
For capital additions
Proceeds from sale of capital assets
Capital contributions
Repayment of capital leases and loans
Net assets (deficiency), end of period
Invested in
Capital
Assets
$
(89,995)
(460,246)
755,082
22,256
(370,992)
$
678,926
8,712,303
(343,947)
-
Internally
Restricted
$
460,246
(755,082)
(22,256)
370,992
$
8,422,256
527,112
-
617,107
Total Net
Assets
June 30, 2011
740,013
13,780
$ 8,925,276
1,533,026
13,780
$ 8,747,484
124,257
53,535
-
-
-
753,793
$ 10,472,082
$ 8,925,276
Endowments
$
89,995
$
Total Net
Assets,
March 31, 2012
$
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Statement of Cash Flows
Nine month period ended March 31, 2012,
with comparative figures for the year ended June 30, 2011
Nine-month
period ended
March 31, 2012
Net inflow (outflow) of cash related to the following activities
Operating
Excess of revenue over expenses
$
Items not involving cash:
Amortization of capital assets
Loss (gain) on disposal of capital assets
Amortization of deferred capital contributions
Donation of investments
Realized loss on investments
Unrealized gain in value of investments
Change in non-cash working capital:
Increase in accounts receivable
Decrease (increase) in bookstore inventory
Increase in prepaid expenses
Increase (decrease) in accounts payable and
accrued liabilities
Increase in deferred revenue
Increase (decrease) specially designated funds
Investing
Proceeds from sale of investments
Investments purchased
Capital assets purchased
Proceeds from sale of capital assets
Financing
Increase in deferred capital contributions
Endowment contributions
Proceeds from demand facility loan
Repayment of demand revolving loan
Repayment of demand facility loan
Repayment of capital leases
Repayment capital loan
Repayment of term loan
Increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
Interest paid in the period was $333,636 (2011 - $471,143) 6/8/2012 10:23 AM
Page 4
1,533,026
Year ended
June 30, 2011
$
124,257
1,061,733
(545,117)
(172,669)
38,594
(30,229)
1,885,338
1,346,132
1,162
(177,493)
(68,110)
1,989
(138,183)
1,089,754
(139,099)
118,142
(31,276)
(51,919)
(38,091)
(43,214)
63,202
982,136
63,454
2,941,897
(85,219)
288,234
(1,190)
1,158,355
(782,177)
(460,246)
755,082
(487,341)
9,363
(51,864)
(1,573,729)
10,086
(1,606,144)
22,256
13,780
(112,500)
(33,796)
(43,551)
(3,256)
(177,889)
(334,956)
2,119,600
396,280
2,515,880
1,083,796
53,535
250,000
(150,000)
(335,062)
(76,771)
(4,344)
(228,419)
592,735
144,946
251,334
396,280
$
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
1. STATUS AND PURPOSE OF THE ORGANIZATION
Concordia University College of Alberta (the “University College”) was incorporated May 16, 1978
by a special act of the Legislative Assembly of Alberta. It is an independent educational institution
and a registered charity under the Income Tax Act. As such it is exempt from corporate income taxes.
2. SUMMARY OF ACCOUNTING POLICIES
These financial statements are prepared in accordance with Canadian generally accepted accounting
principles and are prepared using the deferral method of accounting for contributions and grants.
The following policies are considered significant:
(a) Revenue recognition
Restricted contributions are deferred when received and recognized in the year in which the
related expenses are incurred. Student tuition and fees for academic programs and courses are
recognized as revenue when the programs and courses are taken throughout the academic
semester. Government grants for specific programs are recognized when actual program-related
expenses are incurred. Province of Alberta operating grants are recognized in the fiscal year for
which the funding is intended.
Unrestricted contributions are recognized as revenue when received or receivable if the amount to
be received can be reasonably estimated and collection is reasonably assured.
Unrestricted investment income is recognized as revenue when earned. Income from the
investment of restricted assets is included in deferred revenue in the statement of financial
position. Revenue derived from auxiliary enterprises and activities is recognized when the service
is performed and collection is reasonably assured.
Externally restricted capital contributions are recorded as deferred capital contributions until the
amount is invested to acquire capital assets. Amounts invested representing externally funded
capital assets are then transferred to unamortized deferred capital contributions.
Unamortized deferred capital contributions are amortized into revenue on a straight line method
at a rate corresponding with the amortization rate for the related capital asset.
(b) Cash and cash equivalents
Cash and cash equivalents include cash and liquid short-term guaranteed investment certificates
with maturity less than three months.
(c) Bookstore inventory
Inventory is stated at the lower of cost and net realizable value. Cost is determined using the firstin first-out method. Cost of purchased inventory includes the purchase price, shipping and net tax.
Net realizable value is the estimated selling price in the ordinary course of business, less the
estimated selling costs. When circumstances which previously caused inventories to be written
down no longer exist, the previous impairment is reversed. Inventory represents textbook
inventory.
Page 5
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
2. ACCOUNTING POLICIES (continued)
(d) Capital assets
Capital assets acquired prior to June 1, 1955 are recorded at appraised values. Subsequent
additions are recorded at cost. Donated capital assets are recorded at the fair market value on the
date of the receipt of the gift. Amortization, which is based on the recorded value less the residual
value over the useful life of the asset, is computed using the straight-line method at the following
annual rates:
Buildings
Trailers
Wood structures
Brick structures
Concrete
Equipment
Improvements other than buildings
Library resources
Vehicle
10%
5%
2.5%
2%
10-25%
5-20%
10%
20%
(e) Impairment of long-lived assets
Long-lived assets are tested for recoverability whenever events or changes in circumstances
indicate that their carrying amount may not be recoverable. An impairment loss is recognized
when their carrying value exceeds the total undiscounted cash flows expected from their use and
eventual disposition. The amount of the impairment loss is determined as the excess of the
carrying value of the asset over its fair value.
(f) Use of estimates
The preparation of these financial statements, in conformity with Canadian generally accepted
accounting principles, requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Significant estimates included in the financial statements include the allowance
for doubtful accounts, the value of donated investments, provision for amortization and accrued
liabilities. Actual results could differ from those estimates.
(g) Internally restricted net assets
Internally restricted net assets consist of amounts which are not available for use without the
approval of the Board of Governors.
(h) Endowments
Endowed contributions from external sources are recognized as direct increases in net assets in
the period received. The income from endowments designated for student aid is included in
deferred revenue.
Page 6
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
2. ACCOUNTING POLICIES (continued)
(i) Financial instruments
Financial instruments consist of cash and cash equivalents, investments, accounts receivable,
accounts payable and accrued liabilities, demand loans, capital leases, capital loan, and term loan.
The University College has designated cash and cash equivalents and all investments as held-fortrading financial assets and recorded to fair value with changes in fair value recognized in the
statement of operations. Investments in equities are recorded at fair value on a trade-date basis.
Equity investments include domestic and foreign debt and equity-based equities, which are
widely held and diversified. Equities include shares of publicly-traded companies whose shares
and trust units are traded on domestic and foreign exchanges. Transaction costs are recognized
immediately in the statement of operations.
The fair value of Government of Canada securities, provincial government and provincial
government backed securities and corporate bonds represent the year end quoted market bid
prices. The fair value of equities represents the year end quoted unit value that is based on the net
asset market values of the funds. The fair value of equities represents the year end quoted market
price.
Accounts receivable are classified as loans and receivables and measured at amortized cost.
Accounts payable and accrued liabilities, demand loans, capital leases, capital loan, and term loan
are classified as other financial liabilities and measured at amortized cost.
Risk management:
The University College periodically monitors the principal risks assumed in its investments. The
risks that arise from transacting financial instruments include credit risk, liquidity risk, and price
risk. Price risk arises from changes in interest rates, foreign currency exchange rates and market
prices. The University College does not use derivative financial instruments to alter the effects of
these risks. The University College manages these risks using risk management policies and
practices, including various approved asset mix strategies and risk management limits.
Changes in interest rates and credit ratings are the main cause of changes in the fair value of
government securities and corporate bonds resulting in a favourable or unfavourable variance
compared to book value. Credit risk is mitigated by investing in securities with a rating of BBB
or better and diversifying the securities between government, government backed and corporate
issuers. Interest rate risk is mitigated by managing maturity dates and payment frequency. The
University College is exposed to credit risk related to the accounts receivable arising from student
fees and auxiliary activities. The fair value of the University College’s other financial
instruments, measured at amortized cost, do not differ significantly from their carrying values.
The University College’s long- term interest bearing debts are at fixed rates to mitigate the effects
to cash flow that interest rate changes could have.
The University College has elected not to adopt CICA Handbook Section 3862 “Financial
Instruments – Disclosures” and Section 3863 “Financial Instruments – Presentation” and has
continued to disclose its financial instruments under Section 3861 “Financial Instruments –
Disclosure and Presentation.”
Page 7
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
2.
ACCOUNTING POLICIES (continued)
(j) Capital Management
The University College’s objectives when managing capital are to safeguard its ability to
continue as a going concern in order to continue to achieve its purpose. The University College
sets the sufficiency of capital required to achieve its purpose. In order to maintain or adjust the
capital structure, management looks forward to future needs and will continue to make
recommendations to secure additional capital requirements.
3. INVESTMENTS
In accordance with the general investment policy, the University College participates in a pooled
investment through the Lutheran Foundation Canada. The University College has no direct control
over the individual investment decisions made by the Lutheran Foundation Canada or foreign
equities.
The University College also has a managed portfolio with holdings of guaranteed interest certificates,
fixed income, and equity securities. Investment transactions regularly occur within this portfolio,
based on the recommendation of the portfolio advisor, and approved by management.
Investments are comprised of the following:
Interest bearing deposits
Foreign equities
Domestic equities
Bonds and preferred shares with average stated yields of
approximately 5.34% and maturity dates from
November 4, 2018 to February 7, 2022
March 31, 2012
$
849,118
349,449
624,912
June 30, 2011
$
121,352
322,370
667,315
601,476
540,106
$
2,424,955
$
1,651,143
Investment income is comprised of the following:
Interest and dividends
Unrealized change in fair value of investments
Realized loss on sale of investments
Transaction costs and administration fees
Deferred for designated purposes (Note 7)
Page 8
March 31, 2012
$
58,070
30,229
(38,594)
(13,638)
(30,885)
$
5,182
June 30, 2011
$
43,818
138,183
(1,989)
(16,482)
(45,816)
$
117,714
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
4. CAPITAL ASSETS
Cost
Land
Buildings
Equipment
Improvements other than buildings
Library resources
Vehicles
$
Total
$ 44,650,029
1,442,248
27,957,107
8,663,676
1,131,023
5,371,445
84,530
March 31, 2012
June 30, 2011
Net Book
Value
Net Book
Value
Accumulated
Amortization
$
$
9,363,661
6,990,054
848,537
4,594,910
38,828
$
1,442,248
18,593,446
1,673,622
282,486
776,535
45,702
$
21,835,990
$
22,814,039
$ 23,625,491
Included in these balances are assets under capital lease as follows:
March 31, 2012
Net Book Value
Equipment
$
13,581
Vehicles
$
13,581
1,442,248
19,270,482
1,724,771
314,263
842,210
31,517
June 30, 2011
Net Book Value
$
51,759
12,489
$
64,248
5. BANK INDEBTEDNESS
The University College has approval for a revolving demand loan to a maximum of $2,500,000 (2011
- $2,500,000), which includes the standby letters of credit, to assist with operating cash flow
requirements. This facility revolves in multiples of $50,000 and is convertible from a floating rate to a
fixed rate at any time. The interest rate on borrowings under this loan facility is prime rate plus one
half percent, payable monthly in arrears. Subject to the bank's right to demand payment at any time
advances must be repaid within 395 days from the date of the advance. The facility is secured by
assets of the University College under the general security agreement. This credit facility was not
accessed at March 31, 2012.
The University College has standby letters of credit in favour of Alberta Human Resources and
Employment in the amount of $150,000 expiring on October 8, 2012. No call has been made on these
letters of credit to date.
6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
March 31, 2012
Accrued salaries payable
Trade payables and accrued liabilities
Accrued vacation payable
$
$
Page 9
235,816
509,176
364,128
1,109,120
June 30, 2011
$
$
287,657
402,840
355,421
1,045,918
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
7. DEFERRED REVENUE
Balance,
June 30, 2011
Tuition & Scholarships
Other Income
Government of Alberta Grants
Deferred Investment Income
(Note 3)
$
$
919,121
204,091
192,482
Revenue
recognized
Receipts
$
10,035,582
375,355
8,562,827
45,816
30,885
1,361,510
$ 19,004,647
$
8,795,994
425,618
8,755,083
Balance,
March 31, 2012
$
45,816
$
2,158,709
153,826
226
30,885
$
18,022,511
2,343,646
Deferred revenue includes pre-registration fees, deposits, and restricted donations received but
unused.
8. SPECIALLY DESIGNATED FUNDS
Specially designated funds consist of resources in the amount of $406,716 (2011 - $343,262) that
have been placed with the University College for specific purposes that are not part of the operations
of the University College.
9. DEMAND LOANS
March 31, 2012
Demand loan revolving at bank prime rate plus 1%,
payable in monthly installments of $12,500 plus interest,
amortized over 10 years.
$
1,200,000
$
81,756
1,281,756
Demand loan re-advancable facility at bank prime rate plus
1% amortized over 10 years in monthly installments of
$1,671 per month plus interest amortized over 10 years.
June 30, 2011
$
1,312,500
$
115,552
1,428,052
The University College has two demand loan non-revolving credit facilities. These facilities may be
converted to fixed rate term loans (“FRTL”) at any time for terms of 1 to 10 years. If fixed rate term
is selected, no prepayments will be permitted.
The demand loans are secured by a general security agreement providing a first charge over all
accounts receivable, inventory, and equipment and by a first collateral mortgage in the amount of
$11,500,000 over the property described as Concordia University College of Alberta.
The first facility is secured by a bank guaranteed investment certificate of $757,106.
The second facility provides a maximum outlay of $1,000,000 to assist with ongoing capital
expenditures. The proceeds were used to fund in part the University College’s commitment to match
a $1,000,000 grant through the Knowledge Infrastructure Program of the Government of Canada.
These funds are used for renovations to the buildings on the University College campus.
Page 10
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
9. DEMAND LOANS (continued)
Combined outstanding principal payments are structured as follows:
2013
2014
2015
2016
2017
Thereafter
$
$
195,061
186,695
150,000
150,000
150,000
450,000
1,281,756
10. CAPITAL LEASES
Obligations under capital leases
March 31, 2012
June 30, 2011
Year ending March 31:
2012
2013
$
Total minimum lease payments
Residual amounts
Less amount representing interest
(ranges from 1.0% to 6.3%)
Present value of net minimum lease payments
Current portion of obligations under capital leases
$
11,939
$
41,467
6,279
11,939
-
47,476
8,462
(104)
(822)
11,835
(11,835)
55,386
(49,141)
-
$
6,245
The obligations under capital leases are secured by the assets held under the respective capital leases.
Interest on these obligations, which is included in interest expense, amounted to $672 (2011 - $788).
11. CAPITAL LOAN
March 31, 2012
0% fixed rate vehicle loan, maturing August 31, 2014,
payable in monthly installments of $362, amortized over
6 years
Repayments within the next 12 months
Page 11
June 30, 2011
$
13,846
(4,343)
$
17,102
(4,342)
$
9,503
$
12,760
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
11. CAPITAL LOAN (continued)
The above obligation is secured by a vehicle with a net book value of $5,162 (2011 - $12,489).
Outstanding principal payments are structured as follows:
2013
2014
2015
2016
$
$
4,343
4,343
4,343
817
13,846
12. TERM LOAN
March 31, 2012
5.0% fixed rate term loan, maturing on May 31,
2017, payable in blended monthly installments of
$52,091, amortized over 25 years
$
Repayments scheduled within the next 12 months
June 30, 2011
7,630,586
$
(252,271)
$
7,808,475
(240,533)
7,378,315
$
7,567,942
The term loan is secured by a general security agreement providing a first charge over all accounts
receivable, inventory, and equipment and by a first collateral mortgage in the amount of $11,500,000
over the property described as Concordia University College of Alberta.
Outstanding principal payments are scheduled as follows:
2013
2014
2015
2016
2017
Thereafter
Page 12
$
252,271
262,042
275,448
288,639
304,308
6,247,878
$
7,630,586
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Notes to the Financial Statements
Nine month period ended March 31, 2012
13. DEFERRED CAPITAL CONTRIBUTIONS
Deferred capital contributions represent unspent externally restricted capital grants and donations.
Changes in the deferred contributions balances are as follows:
Balance, beginning of period
March 31, 2012
$
-
June 30, 2011
$
-
22,256
1,083,796
(22,256)
(1,083,796)
Grants and donations received
Transfer to unamortized deferred capital
contributions
$
Balance, end of period
-
$
-
14. UNAMORTIZED DEFERRED CAPITAL CONTRIBUTIONS
The changes in the unamortized deferred capital contributions balance are as follows:
March 31, 2012
June 30, 2011
$
5,604,173
$
4,697,870
Balance, beginning of period
Deferred capital contributions
22,256
1,083,796
Amortization to revenue
(172,669)
(177,493)
$
5,453,760
$
5,604,173
Balance, end of period
15. PENSION PLAN
The University College participates in the Worker Benefit Plan of the Lutheran Church – Canada (the
“Plan”), a multi-employer pension plan. All permanent employees are covered by this retirement
program. The University College contributes a fixed percentage of each participant's salary to the
Plan. In the current period contributions were $1,341,840 (2011 – $1,686,360).
16. COMPARATIVE FIGURES
Certain June 30, 2011 comparatives have been reclassified to conform to the financial statement
presentation adopted in the current period.
Page 13
Schedule 1
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Schedule of Auxiliary Enterprises and Activities
Nine month period ended March 31, 2012,
with comparative figures for the year ended June 30, 2011
Revenue
University College stores
Food services
Student housing
Conventions and other
Nine month period ended
March 31, 2012
$
871,797
37,763
255,447
224,742
Year ended
June 30, 2011
$
985,146
18,700
365,473
235,855
1,389,749
1,605,174
718,578
42,154
122,852
119,617
844,782
74,084
275,296
90,011
1,003,201
1,284,173
Expenses
University College stores
Food services
Student housing
Conventions and other
Net revenue
$
386,548
$
321,001
$
153,219
(4,391)
132,595
$
140,364
(55,384)
90,177
Net revenue (expenses)
University College stores
Food services
Student housing
Conventions and other
105,125
$
Page 14
386,548
145,844
$
321,001
Schedule 2
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Schedule of Expenses by Department
Nine month period ended March 31, 2012,
with comparative figures for the year ended June 30, 2011
Nine month period ended
March 31, 2012
Academic programs
Continuing and professional education
Natural science
Social science
Humanities
Education
Religious studies
Support Programs
Facility maintenance
Institutional support
Student services
Library and archives
General administration
Academic services
Student activities
Page 15
Year ended
June 30, 2011
$
2,247,057
1,762,041
1,245,641
1,111,997
767,198
582,265
$
3,167,344
2,278,173
1,661,481
1,487,144
1,256,610
713,402
$
7,716,199
$
10,564,154
$
2,378,121
1,177,028
1,923,427
753,583
794,566
552,352
722,335
$
2,978,387
1,582,149
2,602,123
1,028,837
1,008,387
863,310
812,290
$
8,301,412
$
10,875,483
Schedule 3
CONCORDIA UNIVERSITY COLLEGE OF ALBERTA
Schedule of Revenue and Expenses by Object
Nine month period ended March 31, 2012,
with comparative figures for the year ended June 30, 2011 Nine months ended
March 31, 2012
Revenue
Revenue from Government of Alberta
General operating grant
Recognized revenue Access to the Future Fund
Total Government of Alberta operating funding
$
Other Government of Alberta grants
Student sources of revenue
Tuition for accredited courses
Foreign student differential fees
Miscellaneous fees and student charges
Total tuition and fees for accredited programs
Tuition and fees for non-accredited programs
Other grants, donations, and fundraising
Sale of goods and services (Schedule 1)
Investment revenue (Note 3)
Gain on sale of capital assets
Other revenue
Amortization of deferred capital contributions (Note 14)
Total revenue
Year ended
June 30, 2011
8,681,049
74,034
8,755,083
-
$ 11,496,392
93,925
11,590,317
106,321
8,755,083
11,696,638
7,720,358
106,442
872,554
8,699,354
96,640
8,795,994
9,378,216
156,409
1,049,240
10,583,865
125,442
10,709,307
359,903
1,389,749
5,182
545,117
390,741
172,669
20,414,438
451,307
1,605,174
117,714
1,162
420,058
177,493
25,178,853
10,472,082
2,400,009
12,872,091
14,128,398
3,254,852
17,383,250
105,244
285,641
152,425
543,310
156,310
353,668
177,603
687,581
168,044
3,651
2,822,930
473,231
602,786
333,636
1,061,733
18,881,412
1,533,026
193,463
26,274
3,758,413
521,511
666,829
471,143
1,346,132
25,054,096
$
124,257
Expenses
Salary and wages
Salaries and wages
Employee benefits
Utilities
Gas
Electricity
Other
Maintenance
Property tax
Supplies and services
Scholarships and bursaries
Cost of goods sold
Interest
Amortization of capital assets
Total Expenses
$
Excess (deficiency) of revenue over expenses
Page 16