CAUBO Financial Reporting Committee

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CAUBO Financial Reporting Committee
Whats New? Resource Guides Tools for Financial
Reporting
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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?

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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

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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

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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

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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

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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

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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

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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
• Whats new reporting deadlines etc

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Internet Access www.knotia.ca website

• 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

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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

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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

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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

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Examples of How Data Can Be Used

• Longitudinal Data Comparison and trend analysis
  using 20/20 Tool
• Executive Summary
• Ad Hoc reporting and Analysis

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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

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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

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Total Revenue by Fund (in millions)2002/2003 -
18,187 (net of Endowment loss of 91)2001/2002
- 17,013 (in millions)
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Total Revenue by Source ( in millions)( of
total source for individual years)(2000/01,
2001/02, 2002/03)
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Proportion of Revenue from All Sources by
Province - 2002/2003(including the mean for each
source)
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Federally Sponsored Research By
Category2001/02 2002/2003 ( in thousands)
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Federally Sponsored Research - By Province 2001
/ 02 2002/2003 (in thousands)
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CAUBO Institutions - Comparison of Operating
Revenue Total Revenue2001/02 2002/2003 ( in
thousands)
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University College Operating Expenditures By
Category ( in millions)2002/2003 - 10,697,
2001/2002 9,670
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Operating Fund - Total Expenses by Type ( in
millions)2002/03 - 10,698 - in 2001/2002 -
9,674
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Comparison of Scholarships - All Funds ( of
total expenditures) by Province - 2000/01,
2001/02, 2002/03
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Total all funds expenditures on Scholarships,
bursaries and prizes
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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
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Increases to fees charged for credit courses in
Ontario produced less teaching revenue
discounted for the impact of rising student aid
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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)

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General Operating Fund Sources of Income
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General Operating Income to Total Funds
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General Operating Income to Total Funds
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Human Resource Costs
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Human Resource Costs Operating Expense
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General Operating Expenses by Function
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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, institutions
  competitive position, internal controls)
• Keep apprised of current developments in
  Financial Reporting

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QUESTIONS?