1. CAUBO Financial Reporting Committee What’s New? Resource Guides & Tools for Financial Reporting

2. Objectives of the Session To demonstrate projects in progress to assist you with your financial reporting needs. To solicit input from you about what the Committee should be working on ie. what resources would help you in your financial reporting?

3. Topics to be Covered CAUBO Financial Reporting Guide Internet access Reporting Committee Webpage Knotia.ca website CAUBO Report 20/20 Tool Executive Summary Ad Hoc Reporting Training & Other Factors

4. CAUBO Financial Reporting Guide Last revised in 1994 Do you know where your Guide is? Intention of Guide was originally: To clarify new non-profit regulations introduced by CICA To provide guidance to universities where options are provided within CICA accounting principles in order to improve consistency in presentation among universities

5. Objectives of Updating Guide Revitalize it as a resource for CAUBO members Enhance its usability Reduce the amount of duplication with the CICA Handbook Provide a resource for examples of financial statement disclosure

6. Survey Results Survey of membership was conducted in March of 2003 with 53 institutions responding 57% Single Column Deferred, 33% Restricted Fund, 10% Multi-column Deferred Lots of variation in reporting although most indicated transparency, openness and clarity would be enhanced if similar policies and reporting followed Survey results will be on the website

7. Status of project Consultant was hired to update the Guide to respond to changes in CICA accounting principles – includes 10 chapters Formatting was improved to make it more user friendly Provides recommendations on issues where alternative accounting treatments permitted

8. Status of project Appendix added to highlight CICA exposure drafts under consideration Currently undergoing quality review and French translation in progress Will be made available this summer via the web – considering linkages to CICA Handbook Follow-up issues will include linkages to member university financial statements Guide will be more dynamic in the future with regular updating

9. Internet Access – Financial Reporting Committee Webpage CAUBO launched new website in February Committee now has its own webpage Will be central resource for locating information about financial reporting Polling capability What’s new – reporting deadlines etc

10. Internet Access – www.knotia.ca website www.knotia.ca Website to access a variety of publications on tax, financial reporting and other issues. Financial Reporting and Tax Committees have been negotiating with CICA to make a standard package of resources available to members at a predefined cost Would make concurrent licenses available Allows you to customize – “briefcase feature” Search capabilities Reporting Guide linked to CICA Handbook

11. CAUBO Report Everyone submits information but how many actively use it for reporting and analysis Provides a composite of information provided by 100 universities and colleges across Canada Committee goal is to make it easier for members to use the data effectively for reporting We need to provide more interpretation of the data to demonstrate its value Hopefully with more use of data by members, greater consistency in reporting may be a by-product

12. Data comparison Consistency and uniformity of data reporting extremely important when using the data for comparison purposes Committee has as its objective – greater scrutiny of submissions of CAUBO data by member institutions to ensure consistent application of guidelines

13. Why Use CAUBO Data? Comparing your institutional data with similar other institutions helps you consider if you are in the “ball park” or not Do not have to be the same as everyone else but it is important to understand why the differences exist Data is not intended to be used for institution to institution comparison – used more effectively in aggregate form

14. Examples of How Data Can Be Used Longitudinal Data Comparison and trend analysis using 20/20 Tool Executive Summary Ad Hoc reporting and Analysis

15. 20/20 Tool Data released in format for 20/20 Tool a few years ago (Before Microsoft Access) Stats Canada will be transitioning to this format Intention is to provide members with data for a preset time-series to allow financial analysis Project underway to identify factors affecting the interpretation of the CAUBO data over time Exact details of delivery still being worked out

16. Executive Summary Summary report will: Increase awareness of the existence of the CAUBO financial information Give preparers knowledge of how the financial data is being used Provide convenient reference source Highlight trends and/or significant differences Include written commentary Published in University Manager

17. Total Revenue by Fund (in $ millions) 2002/2003 - $18,187 (net of Endowment loss of $91) 2001/2002 - $17,013 (in millions)

18. Total Revenue – by Source ($ in millions) (% of total source for individual years) (2000/01, 2001/02, 2002/03)

19. Proportion of Revenue from All Sources by Province - 2002/2003 (including the mean for each source)

20. Federally Sponsored Research – By Category 2001/02 & 2002/2003 ($ in thousands)

21. Federally Sponsored Research - By Province 2001 / 02 & 2002/2003 (in $ thousands)

22. CAUBO Institutions - Comparison of Operating Revenue & Total Revenue 2001/02 & 2002/2003 ($ in thousands)

23. University & College Operating Expenditures By Category ($ in millions) 2002/2003 - $10,697, 2001/2002 $9,670

24. Operating Fund - Total Expenses by Type ($ in millions) 2002/03 - $10,698 - in 2001/2002 - $9,674

25. Comparison of Scholarships - All Funds (% of total expenditures) by Province - 2000/01, 2001/02, 2002/03

26. Total all funds expenditures on Scholarships, bursaries and prizes

27. The majority of the rapid expansion in scholarship expenditures has taken place in the last five years Ontario share had a 52% share in 2002-03 up from 38% ten years earlier

28. Increases to fees charged for credit courses in Ontario produced less “teaching” revenue discounted for the impact of rising student aid

29. Ad Hoc reporting Comparison with similar institutions (not recommended unless you are very familiar with differences) Demonstrate patterns or trends over time Monitor significant changes in both revenue and expenditure lines and their components Comparisons to groupings on regional, national, or similar characteristics (group institutions of similar size)

30. General Operating Fund – Sources of Income

31. % General Operating Income to Total Funds

33. Human Resource Costs

34. Human Resource Costs % Operating Expense

35. General Operating Expenses by Function

36. Financial Reporting – Training and Other Factors Training will be developed for preparers of the CAUBO information to gain a better understanding of guidelines, improve consistency and understand how the data can be used. Need to monitor more than just financial factors (e.g. student enrolment, institution’s competitive position, internal controls) Keep apprised of current developments in Financial Reporting

37. QUESTIONS?