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D. Financial Planning/Financial Condition (Policy D-05, D-10)
D.1 Introduction
The College’s proposed 2012/13 Operating Budget reflects an in-year deficit position of $1
million. The Accumulated Operating Fund Balance is projected to be $10.64 million at the end of
2012/13 as set out in the Financial Projections in Section D.2.
Planning for the 2012/13 fiscal year has been underway since November 2011. There is
sufficient detail associated with this budget from an operational perspective to allow for effective
control and monitoring of each budget unit within the College.
Implications of the proposed March 2012 Provincial Budget have not been reflected in these
projections since the Budget has not yet been passed by the Legislature. Early indications are
that the proposed Provincial Budget includes some increased funding for colleges but it is
expected to be front end loaded. This would seem to indicate that the Board’s direction to
increase the Accumulated Operating Fund Balance to hedge against future revenue shortfalls
was prudent. The College’s proposed budget includes grant assumptions that are believed to be
relatively conservative. Tuition fee revenues are in alignment with the Ministry’s tuition fee
policy which allows for a maximum institutional overall tuition rate increase of up to 5 percent.
The 2012/13 budget development process had a significant focus on cost containment and
realignment of resources allowing for a number of new investments to support our strategic
directions. A number of the cost containment strategies identified are one-time-only in nature
(e.g. deferred equipment purchases, complement positions held temporarily vacant), thus
placing continuing pressure on the budget development for next year. It is anticipated that the
March 2012 proposed Provincial Budget may well result in grant allocations that have an overall
neutral impact on Fanshawe College’s funding in 2012/13, while adding to future years’ budget
challenges. However, if enrolment growth levels at other colleges in Ontario are less than those
at Fanshawe College, there could be some additional funding to ease the pressure on the
College’s operating grant in future years.
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