CSU Audited Financial Statements 2017-18 John Hutton Finance Coordinator 2018-19

Sections of this presentation: Contents Sections of this presentation: Terms & Concepts Audit breakdown – Walking through it all Reconciliation - Comparing our numbers with the Auditors CSU Commentary & Recommendations

Section 1 Terms & Concepts

What is an audit and why do we get one? S1: What is an audit? What is an audit and why do we get one? Independent review of an org’s finances. Confirms the numbers are accurate and presented fairly. Ensures transparency and safeguards vs corruption. Audit was performed by Deloitte. Council appoints auditors every 3 years via RFP process.

The importance of approval includes a declaration of Federal and Provincial Taxes maximum of 6 months after the year end closure.

S1: Terms Non-Consolidated Statements The CSU audit was independent of its subsidiaries (The CSU Daycare & Nursery) Unqualified Opinion vs Qualified Opinion Unqualified opinion is the highest standard. States that the financial statements are accurate. Qualified Opinions state that the auditors didn’t have enough information to give an Unqualified Opinion The CSU received an Unqualified Opinion for 2017-18 Fiscal year The CSU Fiscal year runs from June 1st to May 31st Restricted Funds Money collected for one purpose cannot be used for another (eg SSAELC Fund money is not used for Operations, & vice versa)

Section 2 Audit Breakdown

Summary of changes from 2017 to 2018 S2: Statement of Operations Summary of changes from 2017 to 2018 Student Fees – Slight increase Health Plan – Increased revenue, decreased expenses SSAELC Fund – Revenue decreased $413,091; expenses increased $219,090. General Fund – Total revenue fell ($33,196), Increase in expenses worth $19,504.

S2: Statement of Operations SSAELC Fund – Surplus of $445,332 General Fund – Deficit of ($442,165) Total Reveue-Expenses: $3,167

Summary of Changes of Net Assets, 2018 S2: Changes in Net Assets Summary of Changes of Net Assets, 2018 SSAELC Fund: Balance grew by $345,987 to $10,140,239 General Fund: Balance decreased by ($48,593) to $1,121,112 Capital Asset Investments: Balance decreased by ($294227) to $1,765,763 Total Balance grew by $3167 to $13,027,114

S2: Non-Consolidated Balance Sheet This is the most significant page for reporting the state of the CSU’s finances. Assets: Decreased by ($38,919) to $3,377,146 Investment & Capital Assets: Increased by $399,219 to $111,126,915 Liabilities: Increased by $356,893 to $1,476,947 Net Assets: Increased by $3,167 to $13,027,114

S2: Statement of Cash Flow A cash flow statement breaks down the operating, investing, & financing activities of an organization, and is important in identifying cash coming in and out of that organization. Operating Activities Significant decrease in Excess revenue vs expenses. Surplus of $1,083,389 in 2017 fell to $3,167 in 2018. Mitigated by significant increase in changes to non-cash operating working capital items. Overall, a net increase of cash & cash equivalents of $142,978 to total of $2,045,035.

Reconciliation with CSU Operations Budget Section 3 Reconciliation with CSU Operations Budget

S3: Reconciliation with Operating Budget The auditors report shows numbers for the 2017-2018 FY that do not appear on the operating budget, but are necessary to reconcile the operating numbers. It is important to note that an operating budget is merely a projection of how much an organization plans on spending & receiving for its total operations. In the CSU’s case, total operations are the sum of admin operations, service operations (HOJO, LIC, Advocacy), and clubs operations).

S3: Reconciliation with Operating Budget

S3: Explaining the Variance Operating Student Fees ($212,000), Executive Salaries ($56,504), Elections/Referendums ($27,606) account for $296,110 of the variance Fees were clawed back by Concordia due to an error made in 2015 not spotted until recently. CSU then projected revenue growth off that bad data. HOJO Normally gets a $20,000 grant from Dean of Sudents, but did not. (Will apply this year) Clubs – were significantly more active than before, increasing expenses.

Section 4 Comments & Recommendations

S4: Analysis The overall increase in net assets is due to SSAELC Fund surplus. The Operations Fund ran a loss of $348,578. Much of the loss is due to an error by Concordia but the cash flow problem exists regardless of cause. Maintaining services will require more funds for operations, advocacy and clubs.

S4: Recommendations HOJO - Doing well. Advocacy – Structural deficit. Recent renovations have increased traffic & demand. Has been assisting the Woodnote project by including extra staff. Advocacy – Structural deficit. Reduced their fees in recent years which was inadvisable. Demand has increased as Concordia reduces their own advocacy services. Clubs – Structural deficit. Reduced their fees in recent years which was inadvisable. Clubs activity has increased significantly. LIC – Doing well. Has had increased traffic but has managed to run surpluses. Operations – Cash flow a growing concern. Increased staffing for communications and campaigns. Improving services requires some capital investments (CRM, Printers, revamped website & HOJO classifieds).

S4: Recommendations Recommendation: The CSU run a referendum question to its members to change in its levy structure, so that the fees for Operations, Clubs, and Advocacy are increased, while the SSAELC Fund fee levy is reduced in equal proportion such that the total student fees do not increase or decrease.