The University’s Operating Fund is now projecting a reduced deficit of $16.5 million, instead of the budgeted $24 million deficit, according to a report submitted to the Board of Trustees in March.
The original projection was based on the operational conditions of the COVID-19 pandemic, which contributed to shortfalls in key revenue streams including international student tuition, non-credit tuition, investment income, and overhead from ancillary operations.
Most of the revenue in the Operating Fund is derived from enrolment.
Undergraduate tuition is projecting a $400,000 positive variance because shortfalls in international enrolment for the faculties of Arts and Science, Engineering and Applied Science, and Health Sciences were partially offset by gains in domestic enrolment in the same faculties.
The Smith School of Business exceeded its intake target for international enrolment, which the report says contributed to an overall budget-neutral outlook in undergraduate tuition.
Graduate tuition and program fees are projecting a $9.1 million negative variance based on lower-than-expected enrolment in the professional programs for the Smith School of Business, the Faculty of Law, Masters of Engineering, and various PhD programs. The Smith School of Business is also projecting a decrease in collected fees for the professional programs because of the cancellation of in-person sessions.
However, the report said the decision by faculties and shared service units “to postpone hiring and renovation projects” resulted in savings that reduced revenue losses.
Ancillary Operations, which includes housing and hospitality services, had adjusted its projected deficit to $17.2 million in December after initially budgeting an $800,000 deficit.
The variance was attributed to decreased revenues related to Residence, Event Services, and the Donald Gordon Centre.
Now, Ancillary Operations is also expecting a slightly reduced deficit of $17 million because of “cost containment measures.”
The Bader International Study Centre combined operations are expecting a deficit of £3.0 million against its budgeted deficit of £1.9 million. The variance is attributed to the winter term being offered exclusively online, as the projected revenue had reflected a budget based on in-person sessions.
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