2018-2019 Operating Budget Overview Sheridan Student Union Inc - Presented by: Enrique Ponce President March 13, 2018
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2018-2019 Operating Budget Overview
Sheridan Student Union Inc.
Presented by:
Enrique Ponce Jamie King Hanh Ngo
President General Manager Senior Manager, Finance
March 13, 2018
Background and Budget Assumptions
The following summary document is designed to provide explanations and assumptions used in the
preparation of the operating budget for the Sheridan Student Union Inc. (SSUI) for the year ending April
30, 2019.
This document has been prepared after receiving budget proposals from division managers and the
student executive team. As will be discussed throughout, all accounts have been estimated and
compared to prior year’s data forecasts to highlight any key changes or areas of concern. This document
has been prepared as a guide following consultation with the Executive, Management, and the Finance
Committee, and to secure approval from the SSUI Board of Directors. With this budget on track for
approval and implementation prior to our fiscal year end, it is our hope that this budget will provide
stability and continuity to the organization as we move forward into the 2018-19 fiscal year.
This budget is an “operating budget” and does not reflect the anticipated fees for capital asset additions
or the restricted funds for building fee expenses. This also does not include flow-through accounts for
health & dental fees or any amounts currently held in our reserve accounts. The term “operating
budget” can therefore be defined as the amounts collected (mainly) through the SSUI Student Activity
Fee and our food and beverage and other ancillary services, and used to cover the costs associated with
day-to-day business operations.
Estimated student enrolment figures used in this budget are conservatively estimated based on
preliminary data provided by Sheridan College. The 2018-19 Student Activity Fees used in this operating
budget per term are as follows:
Spring 2018 $58.00
Fall 2018/Winter 2019 $80.00
The assumptions used in this analysis and other forecast materials have been prepared by management,
and are valid as of the date of this report. Management provided input into these revenues and costs by
divisions as follows:
Student Activity Fee Hanh Ngo & Jamie King
Marketing & Communications Mia Fatrdla
Trafalgar Food & Beverage & Trafalgar Facility Dan Casey
Davis Food & Beverage & Davis Facility Dan Casey
Employment Sawssan Matar, Hanh Ngo & Jamie King
Services, Offices & SafeWalk Fawzia Hassan & Amanda Bhajan
Events & Programming Danny Connelly
Leadership & Engagement Jenna Pulver
Elections Tristan Paul
General & Administrative & Board & President Enrique Ponce & Jamie King
Executive Divisions Laura DiViesti, Anders Gatten, Kausar
Farooq, Enrique Ponce
In summary, the Corporation`s proposed operating budget for 2018-19 is projected to be $5,316,105.
We plan to pursue a balanced budget, despite enhancing spending in several areas of the organization.
From an organizational standpoint, it is the administration’s opinion that running a balanced budget is
important since we are an incorporated not-for-profit organization. You will note that most significant
changes in this budget attempt to accommodate the significant impacts of Ontario’s new minimum
wage legislation which is moving minimum wage to $14 an hour starting in January, 2018 and $15 an
hour starting in January, 2019.
Where allocating significant new investments (i.e. events, services and executive positions), care has
been taken to try to align these investments with the SSUI Board’s established strategic direction related
to:
1) Governance
2) Advocacy
3) School Spirit
4) Wellness
5) Services
6) Engagement
When reviewing the budget, the prior year’s budget, and projected actual spending and proposed
budget lines are included for comparison.
We are pleased to report that the budget format and performance margins related to our food and
beverage operations continue to more accurately represent these divisional areas than our budget
historically has been able to in the past. This has been a challenge for several years, and we wish to
acknowledge the significant impacts the 2017-18 faculty strike had on our ancillary and student fee
revenues, which continue to create some uncertainties with regards to projecting revenues and
expenses.
Besides fiscal goals, the execution of the 2018-19 operational budget continues to carry the additional
goal of building and retrenching the SSU’s growing fiscal and management stability. It is management’s
opinion that this budget should demonstrate continued growth and stability as the organization
continues to pivot to become ready for the opening of the new Hazel McCallion Campus Student Centre
in 2019, and anticipate the financial pressures this will place on the SSU. This is a critical concern for
management.
Conceptual of new HMC2A Student Centre Scheduled for Fall 2019 Opening:
Revenue Mix Further to analysis of the projected General Activity Fee and ancillary revenues, our 2018-19 budgeted revenues are expected to be $5,316,105 compared to a budgeted revenue of $4,906,816 for 2017-18. As the charts below show, the revenue mix from 2017-18 to 2018-19 is projected to be similar, however the mix does include increases in our General Activity Fee revenues. The revenue mix also includes increases in SSU food and beverage revenues, although as a percentage of our overall revenue mix this represents a declining proportion of projected overall revenues.
Expense Mix Our overall budgeted expenses for 2018-19 are planned to be $5,316,105, versus our 2017-18 budgeted expenses of $4,906,816. As the charts below show, the expenses mix is similar, however it is worth noting a planned increase to part-time employment costs related to the Ontario minimum wage increase and increased services costs surrounding clubs in particular are driving expenses in these areas. Expenses are projected to decline in our events and programming division due to a more realistic assessment of actual spending needs within this division.
Budget Summary
Revenues:
2018/2019 2017/2018
Proposed 2017/2018 Forecasted
Budget Budget % Change Actual
Division description Revenues Revenues Revenues Revenues
General Activity Fee $3,667,935 $3,363,323 9.1% $3,448,578
The Den $295,035 $327,084 -10% $297,854
Union Fresh/Booster Juice $192,500 $85,000 126% $172,205
Bruin Coffee House $135,700 $137,000 -1% $135,894
Davis Catering $27,540 $27,540 0% $39,195
The Marquee $468,803 $476,377 -2% $434,073
Union Burrito $185,900 $177,000 5% $158,462
The Coffee Loft $125,600 $120,000 5% $119,445
Trafalgar Catering $107,050 $106,450 1% $106,698
Interest Income $15,000 $15,000 0% $12,000
Events Income $32,500 $17,500 86% $15,000
Other Income $62,542 $54,542 15% $45,092
Total Revenues $5,316,105 $4,906,816 8.3% $4,984,494
Expenses:
Division description Expenses Expenses Expenses Expenses
Marketing, Communication & Creative $212,825 $203,447 5% $188,546
The Den $389,768 $388,822 0% $357,369
Union Fresh/Booster Juice $164,051 $81,543 101% $149,215
Bruin Coffee House $125,961 $115,515 9% $122,714
Davis Catering $13,731 $13,731 0% $20,169
The Marquee $584,815 $546,841 7% $526,027
Union Burrito $165,894 $149,365 11% $131,457
The Coffee Loft $120,970 $108,085 12% $104,227
Trafalgar Catering $36,480 $36,480 0% $34,823
Facility Costs $370,515 $352,487 5% $351,231
Employment Costs $1,691,499 $1,502,863 13% $1,493,407
Services Costs $377,225 $321,844 17% $286,934
Events Costs $421,839 $480,977 -12% $402,366
Trafalgar Executive Costs $49,332 $41,768 18% $34,129
Davis Executive Costs $49,332 $41,768 18% $41,012
HMC Executive Costs $49,332 $41,768 18% $41,502
General & Administrative Costs $172,573 $159,535 8% $167,638
President's Budget $68,500 $59,000 16% $55,257
Board of Directors Costs $73,683 $71,183 4% $61,003
Leadership & Engagement $78,018 $108,415 -28% $86,003
Election $62,044 $41,616 49% $33,148
Safe Walk $37,720 $39,764 -5% $36,913
Total Expenses $5,316,105 $4,906,816 8.3% $4,725,090General Activity Fee The General Activity Fee is the main source of income for Sheridan Student Union Inc., and a critical revenue stream for the annual operating budget. Considering a very flat enrolment projection for 2018- 19 (we are projecting 0.5% where historically we have planned for 2-3%), growth in this revenue stream is almost exclusively due to a SSU board authorized ancillary fee increase. This fee increased moved the SSU Fall & Winter Activity Fee from $75 to $80 (please note the Spring 2019 Activity Fee will move from $58 to $65, however this will not affect the 2018-19 budget). Management believes that the SSU Board’s decision to increase activity fees was especially prudent this year as the organization transitions to the opening of the new HMC2A facility in 2019. This summer the President and General Manager aim to assess fees moving forward, and engage in a critical examination of fee structures at other student unions. This will be important information for fee planning efforts, however it will be difficult to compare student union operations across Ontario (we are multi-site with significant food and beverage investments, where other student unions are significantly scaled-back).
Divisional Details Marketing & Communications Management continues to interpret increased investments in our Marketing and Communications Division as being consistent with the SSU Board’s articulated goals of enhancing all of the board’s articulated strategic goals. Effective marketing and promotional efforts also support add divisional areas at SSU. Within the divisional budget, most of the increased costs related to the accommodation of provincial minimum wage increases.
Programming & Events Within the 2018-19 budget, the Programming & Events Division has experienced some of the most significant changes. Specifically, the impacts of the minimum wage legislation have contributed nearly $33,000 in additional costs. These costs have been offset through reductions to the programming budgets at each of the campuses to reflect annual spending. Management is transitioning the management from a two-manager team to a one manager model, and is challenging the division to plan for cost-effective programming at each of our campuses. We will still run traditional programming in our pub spaces, however student participation in these spaces is declining, and broader trends within the industry are focusing on less costly programming efforts engaging a broader (i.e. non-pub) student community more frequently.
Food and Beverage Operations:
$1,538,128 $1,601,669
$1,463,825 $1,446,000
$1,800,000 $1,456,451 $1,440,382
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Food & Beverage Operations Food & Beverage Operations
Revenue Expense
2017/2018 Budget 2017/2018 Forecasted Actual 2018/2019 Budget
The 2017-18 year was challenging for SSU’s food and beverage division due to the faculty strike, and the
introduction of significant increases in Ontario’s minimum wage. The 2018-19 budget is planning for
increased sales (and expenses) in our operations, and continued pressures related to an additional $1
per hour to the Ontario minimum wage in January, 2019, bringing the hourly rate to $15.
As minimum wage increases settle, this creates a highly volatile fiscal environment for our operations as
we see increased costs passed along, particularly concerning the costs of transportation, and the cost of
goods.
Stability is management’s key objective with this division in 2018-19 as we prepare to operationalize the
new HMC2A facility in 2019. Daily monitoring will be required to achieve this goal, and as a result, this
budget (indirectly through the Employment Division) is integrating a performance-based bonus related
to the achievement of labour and cost-of-goods targets. Monitoring these targets closely will be key to
the success of this budget.Facilities: Facilities Division spending is also managed within our Food and Beverage Division. Increases this year are almost exclusively related to cleaning contract increases in our Student Centres.
Employment:
Our employment budget is one of the more significant growth areas this year, looking to factor in:
• A first full-year integration of the CAAT pension plan
• A new Clubs Manager position
• CPP / EI/ extended health and WSIB increases
• Maternity benefits (up to 70% of salary for 12 months, of which, EI covers 55% to a max.
amount, so SSU is committed to top up the difference or 15% top up)
• Modest training and professional development increases
• Increased finding for SU101 costs and a modest staff retreat
• A dedicated budget line for an SSU Employee Bursary Program
• A planned 5% increase for non-management FT staff whose salaries must be adjusted to ensure
equity in relation to the nearly 24% increase in the compensation of the PT staff they manage
• A planned 3% increase for management FT staff to, again, preserve equity as much as possible
with the FT staff they manage.
As in any not-for-profit organization, employment costs account for considerable budgetary expenses.
In SSU’s case, the intent of this budget is to continue to promote stability in our employment group, and
continuity. While 3-5% increase is not typical (we usually aim for 1.5-2%), we need to address salary
gaps at the lower end of our fulltime scale, and to ensure continuity and stability across the entire
organization as our organization transitions in to the HMC2A facility.Services:
The Services Division budget seeks to focus on the SSU’s strategic goal of student engagement and
wellness through proposed new investments in the following areas:
• Increased PT wages reflecting minimum wage legislation
• New software for Clubs (Campus Vision)
• Increased spending related to the Food First program
• Assumption of all office budgets which were previously accounted for elsewhereCampus Executive Budgets: Campus executive budgets remain largely unchanged, mostly adjusting to accommodate the impacts of Ontario minimum wage legislation.
General & Administrative: Generally, this budget looks to maintain itself, with anticipated increases in insurance, consulting fees and mileage costs. The requested increase to consulting fees is to assist management to obtain an independent consultant assessment of current SSU FT salary scales. Some challenges in recruitment, retention, and various data inconsistencies are providing us with a sense that such an engagement is important.
Board of Directors: Most of the changes to the Board budget are minor, looking to reflect actual expenses and anticipated audit fee increases.
Leadership and Engagement: This budget line is adjusting to reflect shifts of certain elements to other budgets, and to reflect actual spending.
Elections:
Increases in this divisional area largely relate to increased investments in:
• staffing and minimum wage costs
• ongoing licensing costs related to voting software
• increased investments in our board retreat and trainingSafewalk: Increased investments in this divisional area largely relate to increased payroll costs at TRC and Davis as the program has become more entrenched through new management and oversight relationships with the campus security offices.
Summary: The 2018-19 budget looks to build upon the strength and stability of the SSU’s operations, and place the SSU in a stable position to expand into the new HMC2A campus facilities in 2019-20. It is important for the SSU to be in a position of stability once those new operational areas come on line. The impact of Ontario’s minimum wage legislation are driving many areas of this budget, as well as increased costs related to retaining a stable FT workforce through our HMC2A transition, and attempting (wherever possible) to maintain centralized management of our three locations in order to avoid duplicating or triplicating FT staff investments at those facilities. The SSU is in a period of significant transition, and this budget seeks to provide a strong platform upon which for with SSU to enter a period of continued expansion and growth. Visions for the role of the student union to complement the goals recently outlined by student affairs in their five-year plan continue to be assessed. This budget allows for Sheridan Student Union to continue to evaluate and participate as a strong and meaningful partner of the college, addressing the priorities of our elected student board.
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