Jackie Hogan
                                                         Chief Financial Officer & Vice
PRESENTATIONS:                                           President Administration
•   February 8, 2021    President’s Advisory Committee   jackie.hogan@ufv.ca
•   February 25, 2021   Senate Budget Committee
•   March 9, 2021       Labour and Management            Betty Poettcker
•   March 19, 2021      Senate                           Associate Vice President, Planning &
•   March 24, 2021      Student Union Society            Resource Allocation
•   March 30, 2021      Finance & Audit Committee
•   April 8, 2021       Board of Governors

                                                         Mark Brosinski
                                                         Manager, Budgets & Financial

EXECUTIVE SUMMARY .......................................................................................................................1
ENVIRONMENTAL SCAN & ASSUMPTIONS ..........................................................................................4
PLANNING & PRIORITIES ....................................................................................................................6
BUDGET OVERVIEW ...........................................................................................................................8
BUDGETS BY CATEGORY ...................................................................................................................17
RISK .................................................................................................................................................24
     1. 2021-22 CONSOLIDATED BUDGET DETAIL – BY FUND ..............................................................25
     2. 2021-22 NON-BASE BUDGET ..................................................................................................26
     3. 2021-22 ANCILLARY BUDGET ..................................................................................................27
     A. 2021-22 BUDGET PRINCIPLES .................................................................................................28
     B. ONE-TIME ALLOCATIONS .......................................................................................................30
     C. SUMMARY OF PROGRAM CHANGES .......................................................................................31
     D. STUDENT TUITION FEES .........................................................................................................32
     E. BENCHMARK INFORMATION ..................................................................................................35
     F. OPERATING FUND BY PORTFOLIO...........................................................................................36

The 2021-22 Consolidated Budget plan has been prepared through a consultative process, guided by
approved Budget Principles and a commitment to align resources to identified priorities. While the
budget development framework was familiar and similar to prior years, the impact of COVID-19 created
an unprecedented planning environment that shaped budget assumptions and conversations.

The impact of COVID-19 is far-reaching and will extend beyond the timing and distribution of
vaccinations, the lifting of health restrictions and the return of gathering and travelling safely. It also
includes anticipating and responding to emerging and enduring changes that impact teaching, learning
and the delivery of services. As a result, the 2021-22 Enrolment Plan anticipates higher levels of online
instructional delivery and restructuring in support areas to move towards more flexibility in how and
when services are offered.

Despite a challenging financial environment and preliminary budget position, the 2021-22 Budget was
developed with strategic intention, aligning resources to university priorities while being mindful of the
impact on individuals, programs and institutional financial sustainability. Opportunities for renewal,
restructuring and investment were identified through reallocation of vacant positions to areas of
priority, maximizing efficiencies and savings in non-salary expenditures, and through an intentional
retirement incentive program, in cooperation with the Faculty and Staff Association (FSA).

It is through the combined efforts and continued commitment of our amazing faculty, staff and students
that UFV has built resilience and financial stability. The 2021-22 Budget demonstrates our continued
commitment to advancing our goals and priorities while ensuring the core academic mission remains
strong and financially sustainable.


UFV’s consolidated budget is prepared using Public Sector Accounting Standards (PSAS), which is consistent with
the reporting required for the annual audited financial statements. The consolidated budget reflects the
university’s entire operations including both unrestricted and restricted funds (Figure 1).

Figure 1: Framework for Consolidated Budget

                                                                         Consolidated Budget

                                                      Continuing                                                   One-Time
                                                       Funding                                                     Funding

                           Unrestricted                                       Restricted                            Strategic
                             Funds                                              Funds                            Priority Funds

                  Operating               Ancillary                Research                Capital   Endowment

        Base      Continuing
      Operating   Education

Continuing Funding
Continuing fund budgets are developed using a hybrid Responsibility Centered Management (RCM)1 budget
methodology that incorporates a shared revenue model to allocate resources. Revenue-generating centers
allocate a portion of their revenues to cover administration, technical and student support, facility maintenance
and other overhead costs.

One-time Funding
One-time funds are generated from general operating surpluses or one-time external grants/funding. Annual
operating surpluses are attributable to savings in salary and benefits as a result of the time required to fill vacant
budgeted positions; non-salary operating expenses less than budget; and/or actual revenue exceeding budget
projections. These funds are used to finance capital projects and renewals, and other non-continuing projects.
One-time funding allocations approved based on the 2019-20 operating surplus are listed in Appendix B.

Unrestricted Funds
Unrestricted funds are funds over which the university has spending and allocation flexibility and authority. Main
unrestricted revenue sources are government operating grants, student fees, investment income, and sales of
services and products. Major expenditure items include salary and benefit costs, facilities operations, scholarships,
materials and contracted services.


The largest unrestricted fund is the operating fund which includes the ongoing operating expenses of the
institution and recognizes revenues from the university’s primary activities. Although categorized as unrestricted,
there are various targets and expectations linked to the provincial funding envelope within this fund.

Restricted Funds
Restricted funds include funds received from external agencies, donors and organizations for specific purposes, or
funds allocated for specific activities such as capital investment. Revenue sources include research or capital
grants, donations and endowed funds, and contracted services. Restricted revenues are recognized in the fiscal
year in which they are spent and must be spent within the limitations of the funding as directed by the external
agencies, donors and organizations that contributed the funds to the university.


The circumstances and assumptions that provided context to the financial planning environment and influenced
the development of the 2021-22 Budget are noted below. This is not an exhaustive list, but significant factors that
shaped decisions for this budget.

    •   The university is committed to IYAQAWTWX (House of Transformation), the new Integrated Strategic
        Plan, approved by the UFV Senate and Board of Governors in January and February of 2021

    •   There is considerable financial uncertainty regarding the economic impact and recovery from the
        COVID-19 pandemic. Potentially high unemployment rates may offer opportunities for reskilling
        Canadians but may also limit international travel and access for international students. Student
        enrolments are expected to be uncertain for budget planning for 2021-22.

    •   UFV is susceptible to trade-related uncertainties and risks related to protectionism, geopolitics and
        the impact of COVID-19 on the economic outlook of the province, country, and world.

    •   Restrictions due to the COVID-19 coronavirus pandemic are expected to continue until there is a
        widespread vaccination or until widespread immunity is established. The university will be guided by
        health and safety recommendations from the Provincial Health Authority (PHO) and the Ministry of
        Advanced Education and Skills Training (AEST).

    •   UFV is partnering with universities across Canada in the Universities Canada commitment to Equity,
        Diversity and Inclusion.

    •   The BC Government has passed the Declaration of Rights of Indigenous Peoples Act (Bill 41)1 which
        represents a crucial step towards reconciliation. The Act was developed in collaboration with the First
        Nations Leadership Council to create a framework for reconciliation in B.C.

    •   UFV activities will align with government goals, expectations, priorities and accountabilities included in
        the Budget Letter2, Mandate Letters3, Ministry of Advanced Education, Skills and Training 2019-20 –
        2021-22 Service Plan4, and the University Act5.

    •   Grant funding is not expected to be increased for FTE growth or general inflationary costs; targeted
        funding may be received for additional FTE that align with the Ministry’s key strategies to achieve their
        goals. Funding for Adult Basic Education and English-language Learning is directly linked to FTE targets

  https://declaration.gov.bc.ca/. Bill 41: https://www.leg.bc.ca/parliamentary-business/legislation-debates-proceedings/41st-parliament/4th-

established annually by UFV and the Ministry.

    •    Implementation of apprenticeship ratios on public infrastructure projects, the community benefits
         framework, and harmonization of training of Red Seal trades across BC and the country have the
         potential to affect apprenticeship in the coming years1. ITA funded programs will be offered
         consistent with the approved ITA training plan and funding in accordance with agreement.

    •    Government funding for capital and maintenance projects include a cost-sharing commitment; the
         university will be required to contribute to the cost of approved major renovations, upgrades and
         capital projects. The 5-Year Capital Plan and the Campus Master Plans will provide direction for

    •    The Government’s climate plan2 outlines significant greenhouse gas emission reduction measures.
         The university is expected to align operations with the Clean BC plan.

    •    Domestic student tuition and mandatory fees are guided by the Ministry’s Tuition Limit Policy3.
         Programs with differential fees will be reviewed periodically.

    •    The implementation of the new B.C. Graduation Program4 may impact the demand for programs and
         services that UFV offers to students as they transition from the secondary school system.

    •    UFV will participate in the Post-Secondary Administrative Services Collaborative (ASC)5 program, a
         collaboration on administrative and support services between B.C.’s 25 public post-secondary
         institutions. Administrative service efficiencies and shared services through ASC will be considered
         where consistent with UFV goals and where savings can be realized.

    •    UFV will adhere to taxation, legislative, contractual and regulatory requirements.

    Industry Training Authority 2019/20-2021/22 Service Plan: https://www.bcbudget.gov.bc.ca/2019/sp/pdf/agency/ita.pdf


Vision, Mission, Values

Our vision
         UFV will be known as a gathering place for learners, leaders, and seekers. We will pursue diverse
         pathways of scholarship, leading to community connection, reconciliation, and prosperity, locally and

Our mission
         Engaging learners, transforming lives, building community.
         yoystexw ye totilthet, ayeqet kw’e shxwaylexws, thayt kw’e st’elt’elawtexw

Our values
         Integrity | letse o sqwelewel
         We act honestly and ethically, upholding these values and ensuring our mission is delivered consistently.

         Inclusivity | lexwsq’eq’ostexw
         We welcome everyone, showing consideration and respect for all experiences and ideas.

         Community | st’elt’elawtexw
         We cultivate strong relationships, acting as a hub where all kinds of communities — educational,
         scholarly, local, global, and cultural — connect and grow.

         Excellence | ey shxweli
         We pursue our highest standard in everything we do, with determination and heart.

Strategic Planning
With the adoption of our new statements of vision, mission and values in the fall of 2019, UFV began the work of
developing an integrated strategic plan (ISP) - the IYAQAWTWX (House of Transformation) as a roadmap to the
future. This plan will guide decisions on where to focus efforts and resources and identify the signals that tell us
when we’ve accomplished our goals. The final draft framework for the IYAQAWTWX has gone through extensive
consultation and was approved by the Board of Governors on February 4, 20211. The 2021-22 budget was
developed as this framework was in progress so priorities for this budget are reflective of the IYAQAWTWX.

UFV embraces its responsibility to the students and the communities we serve. UFV is committed to excellence, to
the success of its students, and to making a difference in its communities. The 2021-22 budget is the mechanism
by which resources are allocated to achieve the strategic plans and priorities of the university. Investment
priorities for 2021-22 continue to build on priorities established last year with specific investment priorities
identified as:


Indigenization and Reconciliation Goals
                 To see Indigenous students and communities reflected in UFV and embrace and fulfill our
                 commitment to Aboriginal Peoples. (Board policy BRP-200.05) 1

        Student Experience and Success
                 To support students at risk and provide services, programming and activities that encourage
                 domestic and international students to achieve their goals; to create opportunities to
                 incorporate experiential learning both inside and outside of the classroom.

        Technology and Transformation
                 To embrace mindsets and technologies that transform teaching, learning, research and business
                 practices in higher education.

        Build Our People
                 To develop strategies and supports that take a holistic approach focusing on employee and
                 student health and wellness; to support employee professional development and apply a lead
                 learner strategy.

        Equity, Diversity and Inclusion (EDI)
                 To implement inclusive excellence principles2 to advance equity, diversity, and inclusion;
                 commitment to develop an action plan and to integrating equity, diversity, and inclusivity into all
                 that we do.

        We Will Be Known
                 To model civic engagement and social responsibility by committing to our communities and
                 community partnerships; to nurture global awareness by embracing intercultural diversity on our

Peoples.pdf . See also https://www.univcan.ca/media-room/media-releases/universities-canada-principles-on-

The university uses fund accounting to segregate major activities and funding sources. It provides enhanced
accountability, control and stewardship of the university’s funds.

The base operating fund includes all activity related to the delivery of academic, vocational and developmental
programming offered by the university, including instructional delivery, student support, facility operations,
general administration and governance. Revenues in base operations consist mainly of government operating
grants and domestic student tuition and fees.

Activities in funds outside of base operations generate revenue to cover direct costs and make a contribution to
the base operating and capital funds. International tuition and fees are collected as part of the non-base fund and
a significant contribution is made to cover the costs of program delivery for international students recognized in
the base operating fund. The base operating fund and the capital fund are reliant on net revenues generated by
the university’s non-base, ancillary and special project activities (Table 1). The aggregate of these activities allow
the university to operate in an all funds, no deficit position.

With a balanced budget mandate, consolidated revenues and expenditures for 2021-22 are budgeted to increase
by 1.0% (6.8% in 2020-21, 8.6% in 2019-20, 5.5% in 2018-19) to $157M, an increase of $1.5M over prior year. See
Schedule 1 for a detailed consolidated budget summary. This is the smallest annual budget increase since 2014-15
when the university was facing a multiple years of operating grant funding reductions.

Table 1: UFV Consolidated Operations, net year-over-year comparison prior to inter-fund transfers ($

                                             Total          Research               2021-22      2020-21 Change
                          Base          Operating Ancillary & Special         Consolidated Consolidated Increa s e
                     Operating Non-Base    Budget Services Purpose    Capital      Budget       Budget (Decrea s e) % Chg
Revenue Budget       $ 103,362 $ 35,892 $ 139,253 $ 5,975 $ 4,897 $ 7,273 $ 157,399 $ 155,888 $ 1,511 1.0%
Expense Budget         125,335   10,945   136,280   4,303      4,773  12,044      157,399      155,888     1,511 1.0%
                       (21,973)  24,947     2,974   1,672        125  (4,770)          -            -        -
Interfund Transfers
   Capital Allocations    (1,456)   (2,777)  (4,233)      (538)    -       4,770         -            -        -
Fund Balance           $ (23,429) $ 22,170 $ (1,259) $   1,134 $   125 $     -   $       -    $       -   $    -

Strategy for approaching the 2021-22 Budget
The development of the 2021-22 budget began with enrolment and revenue projections and estimates for salaries,
benefits and other contractual commitments. Across the country health and travel restrictions related to COVID-
19 have significantly impacted universities, particularly revenues related to international students and on-campus
services. Likewise, mass transition of program delivery and support services to an on-line format increased costs in
technology, technical support, and faculty instructional support. Despite the assumption of easing health
restrictions by September 2021 as a basis for the development of the 2021-22 Budget, revenue and contractual
projections resulted in a preliminary budget deficit of $5.3M (Table 2).

Three main strategies guided our approach to the 2021-22 Budget:

    •   approved budget principles provided direction for budget decisions (Appendix A). Guided by these
        principles, we committed to aligning resources to achieve university priorities, being mindful of the
        impact on individuals, programs and institutional financial sustainability. This meant strategically reducing
        and reallocating budgets to achieve priorities rather than an ‘across the board’ approach;
    •   carefully review all discretionary expenditures for efficiencies and budget savings in light of the rapid
        adoption of technology in the way teaching and services were delivered;
    •   in conjunction with the Faculty and Staff Association, a retirement incentive program was implemented to
        manage position reductions through a voluntary process as much as possible. Established criteria allowed
        the university to strategically approve retirement incentives applications in areas where downsizing was
        anticipated or where restructuring and renewal was important to achieve priorities and future directions.

After initial revenue projections and contractual commitments, the 2021-22 consolidated budget was balanced
(Table 2) with an additional $289K in revenues. Position reductions, new positions in priority areas, and reductions
to part-time staff budgets resulted in a net $3.4M decrease in salaries and benefits. Further expenditure
reductions to capital renewal and debt repayment ($1M) and non-salary expenditures ($575K) resulted in a
balanced budget position.

Table 2: UFV 2021-22 Final Consolidated Budget compared to Preliminary Budget position ($
                                           Revenue &       2021-22                       2021-22
                                   2020-21 Contractual Preliminary           Budget Consolidated
                                   Budget Projections       Budget         Decisions     Budget         % Change
  Gov't Operating Grants     $      61,790 $       5,380 $ 67,170 $             143 $      67,313          8.9%
  Student Tuition & Fees            73,338        (2,872)   70,466              255        70,721        (3.6%)
  Other Revenue                     13,867        (1,286)   12,581             (109)       12,472       (10.1%)
  Amortization of Def. Cont.         6,893           -       6,893              -           6,893           0.0%
                                   155,888         1,222   157,110              289       157,399          1.0%
   Salaries & Benefits             110,904        7,327       118,231        (3,408)      114,823          3.5%
   Non-Salary Expenses              35,234         (819)       34,415        (1,589)       32,826        (6.8%)
   Amortization                      9,750          -           9,750           -           9,750           0.0%
                                   155,888        6,508       162,396        (4,997)      157,399          1.0%
Net Budget Position            $       -     $    (5,286) $    (5,286) $      5,286 $         -

Revenues from government operating grants and student fees are UFV’s largest sources of revenue, totaling 88%
or $138M of a total budget of $157M. Since 2019-20, total student fees make up the largest portion of the budget.
This continues for 2021-22, despite a projected $4.7M reduction in projected international student tuition. In
2021-22, $70.7M or 45% of total revenues come from student fees, and $67.3M or 43% of revenues in government
operating grants (Figure 2).

Figure 2: Distribution of 2020-21 Consolidated Revenues ($ millions)

Government Operating Grants
Government operating grants increased by $5.5M to $67.3M for 2021-22, an 8.9% increase over 2020-21. The
significant operating grant increase funds 3 years of general wage increases in one year. Government grant
funding increased to 43% of total budgeted revenues from 40% in 2020-21.

Salary and Benefit Funding
The Collective Agreement for the period April 1, 2019 to March 31, 2022 with the Faculty and Staff Association
(FSA) was ratified during the 2020-21 fiscal year. No general wage increases were factored into prior year budgets
as an agreement was not in place as budgets were developed and approved. With an agreement in place, the full
funding for general wage increases to March 2022 is included in the 2021-22 Budget. Employee benefit increases
such as the Canada Pension Plan enhancement or any other benefit increases are not funded.

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Student Funded Spaces
With the provincial operating grant funding from the Ministry of Advanced Education and Skills Training (AEST), the
university is expected to deliver education for 6,716 full time equivalent domestic (FTE) students. With the
exception of 40 spaces for new Technology programming in 2019-20, this target has not changed significantly in
the last 9 years. Other than specific targets for Health and Developmental programming, the university has
discretion to choose the programs it wishes to deliver with AEST funding.

Industry Training Authority grant funding is tied to specific trades and technology programs. UFV does not receive
any funding for international student spaces.

Estimated FTEs for the 2021-22 budget are calculated based on program and course plans submitted by Faculties
as part of the annual budget process (Table 3).

Table 3: Historical FTE Trends to Advanced Education & Skills Training Ministry Target

                                     2019-20     2019-20      2020-21     2020-21      Projected      2021-22
                                     Ministry       Final     Ministry Interim FTE      Ministry      Planned
                                   FTE Target        FTE    FTE Target Projection     FTE Target          FTE
 Health                                 475          437          475          464          475           440
 Developmental                          325          313          325          307          325           323
 Tech Expansion                          44           20           40           63           40             40
 AEST Balance                         5,876        5,858        5,876        6,065        5,876          6,261
AEST Total Targeted FTE               6,720        6,628        6,716        6,899        6,716          7,064
 Industry Training Authority                         749                       617                        600
 International*                                    2,067                     1,446                       1,527
Total FTE                                          9,444                     8,962                       9,191
          AEST % FTE to Target:                    98.6%                   102.7%                      105.2%
* Excludes UFV India student FTE

Student Fees
Student fee revenues are 45% of total revenues (47% in 2020-21) and are directly linked to annual enrolment
plans. This revenue is projected to be down by $2.6M over prior year to $70.7M.

Domestic student enrolments at UFV peaked in 2011-12 and then a gradual decline until 2018-19 (Figure 3). In
2020-21, domestic student numbers increased and are expected to exceed Ministry student FTE targets. Despite
not welcoming as many first year students, the university saw more returning students and returning students
took more courses on average. Nationally and provincially, the number of college-age citizens has been declining,
but projections indicate that from 2022 onwards, the Fraser Valley will see a growing college-age demographic.
The enrolment plans for 2021-22 factor in further domestic student enrolment growth.

For the three years prior to COVID-19 in 2020-21, the university experienced significant growth in international
student numbers, exceeding budget targets every year. With the advent of COVID-19 and related travel

                                                                                                      11 | P a g e
restrictions and study permit processing delays, international student numbers declined and the university did not
achieve revenue targets in 2020-21. Similar to domestic student trends, retention of international students was
strong, but there was a significant drop in first year students. Enrolment plans for 2021-22 hold international
student numbers steady to the level of international student numbers in 2020-21.

Overall, the 2021-22 budget plan anticipates approximately 3,100 more domestic registrations and 2,450 fewer
international registrations than the prior year budget. Domestic student fee revenues for academic programming
increase by $2.35M with $1.68M related to higher student registrations and $670K for a 2% increase in tuition
rates. International student fee revenues decrease by $4.7M, with $5.4M related to fewer student registrations
offset by $680K increase for a 2% increase in tuition rates.

Figure 3: Enrolment Trend 2014-15 to 2020-21

Other Revenue
Other Revenue decreases by $1.4M to $12.47M in the 2021-22 Budget. The decrease is related to a significant
drop in Ancillary Services revenue offset by a small increase in Investment Income. With most on-campus activity
paused during the COVID-19 pandemic, ancillary services are significantly impacted. Pay parking and conferencing
services have been suspended since April 2020; to adhere to health restrictions, student housing capacity has been
capped at 50%; printing and food services are operating at minimal levels and bookstore operations have pivoted
to mainly online service. This budget assumes that health restrictions will ease by the fall of 2021 and campus
activity and services and related revenues will begin to recover in September 2021.

                                                                                                     12 | P a g e
Salaries and benefits
Salaries and benefits are the university’s largest expenditure and account for 73% of consolidated expenditures.
The preliminary position began with an increase of $7.3M for salary commitments; $6.5M for negotiated wage
increases and $360K for annual increments and adjustments, and $420K for additional instructional costs for
increased student numbers.

With a reduction in salary costs necessary to balance the budget, a retirement incentive program was offered to
help manage position reductions through a voluntary process as much as possible. Established criteria allowed the
university to strategically approve retirement incentive applications in areas where downsizing was anticipated or
where restructuring and renewal was important to achieve priorities and future directions.

24 voluntary retirement incentive applications were accepted, providing $1.8M in net savings. An additional 25.9
FTE vacancies were eliminated or reallocated in light of university priorities. Temporary salary budgets were
reduced to maintain permanent positions. There are lay-offs for 7 (5.3 FTE) individuals as a result of a shortage
and/or restructuring of work. A combined 54.8 FTE positions were eliminated from the budget; reallocations and
restructuring add 29 new positions in priority areas. The result is a reduction of $3.4M in salary costs and a net
budget increase for salaries and benefits of $3.9M (4%) to $114.8M (Figure 4).

Non-salary expenditures
Non-salary budgets make up 21% of total budget expenditures and reviewing this category of expenditures for cost
savings was a priority. Non salary budgets were reduced by $2.4M (6.8%) to $32.8M. Major savings were found
through a $1.27M reduction to contracts, capital contributions and debt repayment, a reduction of $400K in travel
and hospitality, $850K in supplies and books (including for resale), $90K in utilities and $120K in recruitment and
training. The increase of $240K for software licensing costs is related to the shift to online learning and virtual
support services (Figure 4).

Figure 4: Distribution of 2020-21 Consolidated Expenditures ($ millions)

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Budget 2021-22 decisions were guided by the university’s budget principles (Appendix A). Despite a challenging
financial environment and preliminary budget position, opportunities for renewal, restructuring and investment to
align resources with university priorities and goals were found through voluntary retirements, reallocation of
vacant positions and non-salary savings.

Indigenization and Reconciliation Goals
UFV’s newly adopted Integrated Strategic Plan continues to emphasize the importance of indigenization and to
achieving the Calls to Action from the Truth and Reconciliation Commission and the United Nations Declaration on
the Rights of Indigenous Peoples. The university’s commitment is to honour indigenous knowledge at all
touchpoints of learning, weaving in a new way of doing things throughout everything that occurs at UFV.

Building on prior year investments, this budget adds funding for an additional faculty hire to move the university
further along in stabilizing and strengthening the transition program for indigenous students, creating a critical
mass of culturally competent faculty in Indigenous Studies and providing mentors for indigenous students at UFV.
With this funding, UFV will have intentionally funded 5 new Indigenous faculty hires over two years, with a number
of those still in progress. This year’s budget also includes funding for a new Indigenous Studies Certificate.

Academic Programming & Support
In the last year, significant faculty effort was directed to adapting courses to accommodate online delivery, and to
adjust and adapt service and research to accommodate requirements related to ever changing COVID-19 related
safety directives. The work of learning designers, hired to help faculty adapt their courses, will continue for at least
one more year. In spite of the impact of COVID-19 on faculty time for program development, new programming in
Communications, Applied Management and Indigenous Studies is currently in progress and included as part of this

The 2021-22 English Language Studies (ELS) Budget is significantly decreased to adjust resources for reduced
student demand. Demand for ELS has been steadily decreasing as international students come to Canada with
higher level English capabilities. The voluntary retirement incentive helped ease the downsizing of this faculty, but
lay-offs were not entirely avoidable.

UFV is committed to experiential learning opportunities for every student attending UFV and to building on our
strength of providing rich and meaningful research opportunities for students. Additional funding has been added
to support faculty research that engages students, and resources to support student practicums have been added
to the Child, Youth and Family Studies programs. To streamline the university’s ability to assess and recognize
learning experiences outside of UFV for our students, investments were added to support prior learning

This budget creates opportunities for restructuring and program renewal to support industry trends, student
learning interests, and university priorities. Investment in Industry Services leadership in the Faculty of Applied and
Technical Studies portfolio to develop new partnerships and grow contract training as well as resources to create a
School of Computing are part of the 2021-22 Budget.

Development of interdisciplinary agriculture programming and engagement with the agriculture industry remain a
priority for the university. The 2021-22 budget provides opportunity for agricultural program renewal.
Additionally, in partnership with industry, a new research chair in berry production will help the university better

                                                                                                          14 | P a g e
engage with the needs of the agricultural community. Building off an existing first year engineering transfer
program and related applied programming in mechatronics, automation robotics and digital manufacturing, the
university will also explore adding an applied engineering degree. Other academic restructuring efforts include
plans to create a Faculty of Education.

Student Experience & Success
UFV recognizes the success of its students requires supports and experiences which positively impact their
intellectual, physical, professional, psychological, social and cultural well-being. Over the last year, the student
support team has responded to the challenges of COVID-19 and found creative ways to deliver supports to
students in a virtual environment. While delivering student services virtually has many challenges, there are things
that are working well and that the university will want to continue even after students are able to be back on
campus. Students are enjoying access to services on evenings and weekends facilitated by the flexibility
employees have by working remote.

Mental health challenges during COVID-19 have increased. A restructuring of counselling and student wellness
services has resulted in better service to UFV students and this budgets adds additional resources to accommodate
growing pressure for student counselling and wellness services. Building on a successful model, additional
resources have been added to coordinate student supports.

Significant savings and efficiencies were realized with a new model for funding the Centre for Accessibility Services
interpreters. UFV was an advocate for a changes to athletic sports league play structure within Canada West,
resulting in a noteworthy decrease in athletic travel costs. Restructuring of work in the areas of Admissions and
Advising provided further efficiencies while delivering on UFV’s commitment to supporting our students.

Equity, Diversity and Inclusion (EDI)
Inclusivity is one of UFV’s core values and the university is committed to advancing equity, diversity, and inclusivity
(EDI) into all that we do. In the fall of 2019, the president formed a task force on Equity, Diversity, and Inclusion to
provide leadership in creating and fostering an environment that supports and creates best practices, policies, and
pedagogy for EDI.

The 2021-22 budget makes some significant progress in delivering on the recommendations of the task force and
demonstrates UFV’s commitment to EDI. Funding for UFV’s first EDI Director is included in this budget, along with
funding for EDI support and programming for the new Director to be able to deliver on UFV’s commitment to EDI.
Additional funding has been added for staff to access training and professional development in EDI, accessibility,
mental health and indigenization.

Technology and Transformation
Recognizing that digital technologies are transforming teaching, learning, and business practices in higher
education, the university identified technology and business transformation as a priority in the 2019-20 budget
and supporting a multi-year technology transformation plan. To date, the organizational structure within the Office
of the Chief Information Officer (OCIO) division has been re-designed to align with changing needs, with
recruitment for key leadership positions, gaps in technical expertise and business transformation expertise. The
emergence of COVID-19 in 2020-21 was significant and technology enhanced capabilities that were expected to

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roll out over years were rolled out in weeks. Faculty members adapted their classes for online delivery and all but
essential workers pivoted to deliver student and administrative services from their homes with one week’s notice.
Information Technology Services (ITS), the Teaching & Learning Centre (TLC) and the Business Transformation
Office (BTO) delivered the technology infrastructure and support for this pivot. 2021-22 was to be the third year of
the multi-year technology transformation plan. In this challenging budget year, this plan was revisited and revised,
looking for efficiencies to deliver increased demand for technology and support. A net two new positions, a
reallocation of vacancies to areas of highest need and risk, and additional funding for co-op positions will enable
technology and transformation to mature and move forward in 2021-22.

Community Engagement and University Relations (Will be Known)
Leading from the Vision statement that UFV will be known as a gathering place for learners, leaders, and seekers,
the university is committed to raising the profile of UFV in its endeavors to connect with students, community
partners, industry partners, governments, research agencies, and donors.

The 2021-22 budget commits resources to engaging UFV alumni with an inaugural Director dually appointed to
Alumni Relations and the Alumni Association Board. Existing resources will be refocused on a digital engagement

UFV’s website is a primary portal for students, community, industry and donors to UFV. A web content
management project is underway and will continue into 2021-22 to ensure the website and digital channels are
aligned with marketing strategy.

Administration & Sustainability
Priorities in this areas focus on continuing to deliver essential services, meet fiduciary responsibility, and provide a
safe and responsive environment.

Retirement incentives in this area resulted in savings and provided opportunities for restructuring and reallocation
of work. As a result, resources have been added to give leadership to facilities maintenance at the Chilliwack (CEP)
campus, as well as restructuring of work in payroll and audit.

Sustainability projects continue to pay dividends with lower utility usage and budgets. Through treasury
management the institution is able to manage its operating cash flow needs while generating additional revenues
through investments and balancing financial risk.

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Operating Fund
Figure 5 shows broad expenditure categories and resource allocation decisions within the operating fund over the
past three years. The cost reductions and investment choices in this year’s budget are reflected in the category
allocations for 2021-22.

The largest investment in total dollars is in academic programming (Faculties) at $1.6M, although spending in this
area as a total percentage of budget dropped to 50.8% of budget (51.3% in 2020-21). Intentional investments in
academic support and technology and transformation to support the transition to on-line learning and improve
pedagogical and business processes are highlighted by a larger percentage of the budget allocated to these
activities this year. The increase to central university reflects increase to central benefits from the collective
agreement and to top-up the contingency to 1.5% of operating revenue. Efficiencies were found in facilities
though energy and sustainability initiatives and restructuring in administrative areas resulted in budget reductions.

While Figure 5 is an indication of how budget resources are allocated at UFV, Appendix E provides comparative
Financial Information of Universities and Colleges (FIUC) based on an annual publication that is jointly prepared by
the Canadian Association of University Business Officers (CAUBO) and Statistics Canada. Appendix F offers a
summary of the Operating Funds by portfolio.

Figure 5: Base Fund Budget by Category ($ millions) and a % of Total Base Budget

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Ancillary Fund
The Ancillary Fund relates to the university’s business enterprise that provides services and products to the
university community including the bookstore, print services, student housing, food, conferencing services and
parking. These services operate as a self-sustaining unit, funding direct costs, capital repairs and maintenance, and
related capital assets. Health restrictions and fewer students and employees on campus are impacting ancillary
revenues. The 2021-22 Budget assumes significant on-campus activity in the fall 2021 when revenues will begin to

Ancillary Services is projected to contribute $1.13M to base operations and $538K to the capital fund, a reduction
of $125K and $594K respectively from 2020-21. Capital allocations have been reduced due to debt retirement and
reduced debt repayment schedules, as well as deferring the annual contribution to maintenance reserves for one
year. Reductions in annual operating expense budgets were realized through the elimination of vacant positions,
and cost savings in the bookstore, print shop and other contracted services. Resale expense budgets were reduced
to match lower sales revenues. Figure 6 shows the change over prior year of the revenue allocation for various
ancillary services to cover expenditures, capital repayment and contribution to the operating fund.

Figure 6: Prior Year Comparison of Ancillary Services Budget and Contribution to Base Operating Fund
($ millions)

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Extension Studies
Extension studies includes programming for community based continuing education, part-time vocational and
trades training, and contract training provided to industry partners. These programs operate as self-sustaining
units funding direct costs and contributing to base operations. Extension studies have consistently contributed
approximately 14% of their revenues ($600K) to base operations while providing additional training and education
to our local communities.

Figure 7: Extension Studies Budget ($ millions) and % Contribution to Base Operating Fund

Extension studies revenues are budgeted to remain relatively consistent to prior year. New programming is
currently being developed in civic governance in partnership with local municipal governments; likewise, a new
micro-credential in digital marketing skills is under development with the support of additional one-time
government funds. A new director in Industry Services will dedicate resources to grow industry and international
partnerships, expanding programming and revenue opportunities for the university.

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International Fund

International student education has seen significant growth over the past few years, as shown in figure 8. The
impact of COVID-19, including travel restrictions and challenges for international students to receive study permits,
has resulted in a reduction to international enrolments. The international expense budget covers student
recruitment costs and international office administration. The cost of educating and providing student services to
international students is reflected in the contribution to operations. International revenues also make a
contribution to the capital fund to the support the development and maintenance of the university’s

Figure 8: International Budget ($ millions), and Enrolments

The decline in international enrolments has resulted in a $3.6M and $0.5M reduction in funding to university base
operations and the capital fund respectively. International student tuition and fees are approximately 20% of the
university’s revenue budget. The impact of COVID-19 to international enrolments will continue to be monitored
and cost mitigation strategies will be employed if international student enrolments for 2021-22 do not achieve

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Capital Fund
UFV’s capital plan is fundamental to achieving our vision of becoming known as gathering place for learners,
leaders and seekers; for supporting diverse pathways for scholarship and community connections. Our physical
spaces contribute significantly to engaging learners, transforming lives and building community.

The capital plan focuses on creating spaces that align with strategic directions and addresses safety and deferred
maintenance priorities.

Funds for capital investment come from a combination of government contributions and year-end surplus funds
restricted for capital investment. Debt financing opportunities are limited by government direction and currently a
specific debt fund is available to support student housing.

The following three year-capital budget includes approved major capital projects, and annual renovations,
maintenance and repair projects. These projects are funded from a combination of UFV reserves, annual Ministry
contributions for renovations and maintenance, and Ministry funding for specific major projects.

A five-year capital plan for major projects in the planning stages but not yet approved for funding by the Ministry
will be brought forward in June 2021.

Table 4: UFV Approved Projects and Annual Maintenance & Repairs Budget ($ thousands)

                                                                            2021-22         2022-23        2023-24
Major Capital Projects - New Construction
   Building 1041 purchase - Chilliwack campus 1                        $      6,000 $           -     $         -
                                                                              6,000             -               -
Major Capital Projects, Renovations & Deferred Maintenance
   Building D envelope remediation (completion) 2                             7,000             -               -
                                                                              7,000             -               -
Annual Maintenance & Repairs, and ITS Infrastructure
  Renovations & repairs 3                                                     3,200           3,200          3,200
  Facility Maintenance 4                                                        875             875            875
  Technology & automation infrastructure                                      2,000           2,000          2,000
  Furniture, fixtures & equipment                                               500             500            500
                                                                              6,575           6,575          6,575
Approved Projects, Maintenance, and ITS Infrastructure                 $     19,575 $         6,575 $        6,575
       Includes $5M Ministry Funding
       Includes $7M Ministry Funding
       Includes $2.2M annual Ministry Funding
       Includes $875K annual Ministry Funding

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Research Fund
Activity in this fund is funded by grants and contracts restricted for specific research activity. Tri-Council granting
agencies providing sponsored research grants include the Natural Sciences & Engineering Research Council
(NSERC), Social Sciences and Humanities Research Council (SSHRC), and Canadian Institutes of Health Research
(CIHR). Funding for Canada Research Chairs (CRC) and research funded by business and industry partners rounds
out activity in this fund.

Figure 9: Research Income 2015-16 to 2019-20 - Actuals ($ millions)

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Endowment Fund
Endowments consist of externally restricted donations received by the university, the principal of which is required
to be maintained intact in perpetuity. Endowed funds are professionally managed by Phillips Hager & North
Investment Management (PH&N) guided by the university’s Investment policy. The market value of UFV’s
endowed funds as of December 31, 2020 is $18M. New contributions along with steady annual returns have
resulted in consistent growth of endowed funds over the last five years.

Figure 10: Market Value of Investment Portfolio versus Rate of Return ($ millions)

Figure 11: 2020-21 Endowment Budget
                                                               Investment income earned on endowments must
                                                               be used in accordance with the purposes
                                                               established by the donors. Stability and
                                                               predictability are important for planning
                                                               scholarships and other programs and activities that
                                                               are supported by endowment earnings. The policy
                                                               spending rate of 4% ensures necessary spending
                                                               room for fluctuating returns and inflation
                                                               protection. For 2020-21 there was $730K available
                                                               for disbursement from endowed funds, restricted
                                                               for student scholarships and bursaries, programs
                                                               and research.

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The global scope and complexity of the COVID-19 pandemic has brought a new level of uncertainty to our world.
There is uncertainty as to when this pandemic will end and health restrictions lifted. The university does not yet
fully understand the enduring impact of COVID-19 on the delivery of education and the way students choose to
learn and engage with support services.

Health restrictions imposed due to COVID-19 tested our ability to organize, react and transform operations in a
short period of time. As the COVID-19 situation continues to evolve and a timeline to ‘return to normal’ is unclear,
there is higher than usual risk in achieving the 2021-22 revenue budget targets.

The university will be vigilant in monitoring results to budget and if it becomes apparent that revenues will not
achieve targets, we will follow the mitigation strategy we employed in 2020-21: we will be guided by the budget
principles (take a strategic perspective); call on the contingency built into the budget; strategically hold hiring and
discretionary spending. As clarity emerges, UFV’s response to the enduring effects of COVID-19 will be reflected in
strategic allocation decisions in future year budgets.

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2021-22 UFV Consolidated Budget ($ Thousands)
                                                                          Total                               Research                        2021-22     2020-21 Change
                                                       Base           Operating                     Ancillary & Special                  Consolidated Consolidate Increa s e
                                                   Operating Non-Base   Budget                      Services Purpose             Capital      Budget    d Budget (Decrea s e) % Chg
                  Government Operating Grants     $    65,853     $      -        $    65,853   $       -        $   1,079   $     381     $    67,313   $    61,790   $   5,523
                  Student Tuition & Fees               34,597         35,755           70,352               15        369           -           70,736        73,338       (2,602)
                  Contracts/Research Revenue               182               87          269            -            1,676          -            1,945         2,045        (100)
                  Other Revenue                           1,344              50         1,394           324          1,433          -            3,151         3,287        (137)
                  Sales of Goods & Services                 -            -                -           5,321            -            -            5,321         6,654       (1,333)
                  Rental & Lease Revenue                    -            -                -             314            -            -             314           256               59
                  Investment Income                       1,385          -              1,385           -             341           -            1,726         1,626         100
                  Amortization of Deferred Contribution                  -                -             -              -          6,893          6,893         6,893          -

                                                      103,362         35,892          139,253         5,975          4,897        7,273        157,399       155,888       1,511       1.0%

                  Salaries & Benefits                 106,919          4,672          111,590         1,343          1,906          -          114,839       110,904       3,935
                  Cost of Goods Sold                       170           -               170          2,469            -            -            2,639         3,287        (648)
                  Other Operating Costs                17,567          5,953           23,520           271          2,117        2,294         28,202        29,978       (1,776)
                  Scholarships & Bursaries                 679          320              999                 5        750           -            1,754         1,754          -
                  Debt Service Costs                        -            -                -             214            -            -             214           214           -
                                                                                                                                                                                              2021-22 CONSOLIDATED BUDGET DETAIL – BY FUND

                  Amortization Expense                      -            -                -             -              -          9,750          9,750         9,750          -

                                                      125,335         10,945          136,280         4,303          4,773       12,044        157,399       155,888       1,511       1.0%

               Interfund Transfers:
                  Capital Allocations                     1,456        2,777            4,233           538            -         (4,770)           -             -            -

               Fund Balance                       $ (23,429) $        22,170      $    (1,259) $      1,134      $    125    $      -      $       -     $       -     $      -

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                                                                                                                                                                                                                                             SCHEDULE 1
2021-22 UFV Non-Base Budget ($ Thousands)
                                                                                      Total                               2021-22           2020-21            Change
                                                          Continuing    Industry Extension                               Non-Base          Non-Base            Increa s e        %
                                                           Education    Services    Studies International                  Budget            Budget          (Decrea s e)   Change
                  Government Operating Grants             $      -        $     -     $     -        $      -        $        -        $        -        $          -
                  Student Tuition & Fees                       2,074          2,180       4,254          31,500            35,755            40,640              (4,885)
                  Contracts/Research Revenue                     -              -           -                   87                87                87              -
                  Other Revenue                                  -              -           -                   50                50                50              -
                  Sales of Goods & Services                      -              -           -               -                 -                 -                   -
                  Rental & Lease Revenue                         -              -           -               -                 -                 -                   -
                                                                                                                                                                                      2021-22 NON-BASE BUDGET

                  Investment Income                              -              -           -               -                 -                 -                   -
                  Amortization of Deferred Contribution          -              -           -               -                 -                 -                   -

                                                               2,074          2,180       4,254          31,637            35,892            40,777              (4,885)     -12.0%

                  Salaries & Benefits                          1,206          1,178       2,384           2,288             4,672             4,669                     3
                  Cost of Goods Sold                             -              -           -               -                 -                 -                   -
                  Other Operating Costs                         437            822        1,260           4,693             5,953             6,762                (809)
                  Scholarships & Bursaries                       -              -           -              320               320               320                  -
                  Debt Service Costs                             -              -           -               -                 -                 -                   -
                  Amortization Expense                           -              -           -               -                 -                 -                   -

                                                               1,643          2,000       3,643           7,301            10,945            11,750                (805)      -6.9%

               Interfund Transfers:
                  Capital Allocations                                20         -               20        2,757             2,777             3,277                (500)     -15.3%

               Fund Balance                               $     411       $    180    $    591       $   21,579      $     22,170      $     25,750      $       (3,580)     -13.9%

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                                                                                                                                                                                                                SCHEDULE 2
2021-22 UFV Ancillary Budget ($ Thousands)
                                                    Ancillary                                                                                                               2021-22           2020-21
                                                    Services                      Events &                Food                            Other           Student          Ancillary         Ancillary           Increase
                                                      Admin Bookstore                Conf.             Services         Parking         Ancillary         Housing           Budget            Budget           (Decrease)     % Chg
                  Government Operating Grants $           -        $     -        $       -        $       -        $      -        $        -        $       -        $        -        $        -        $        -
                  Student Tuition & Fees                  -              -                -                -               -                 -                    15                15                21                (6)
                  Contracts/Research Revenue              -              -                -                -               -                 -                -                 -                 -                 -
                  Other Revenue                           -              -                150              120             -                     31               26           327               481               (154)
                  Sales of Goods & Services               -            3,281              -                -               886               -              1,155             5,321             6,654            (1,333)
                  Rental & Lease Revenue                  -              -                -                -               -                152              160               312               256                    56
                  Investment Income                       -              -                -                -               -                 -                -                 -                 -                 -
                                                                                                                                                                                                                                       2021-22 ANCILLARY BUDGET

                  Amortization of Deferred Contribution                  -                -                -               -                 -                -                 -                 -                 -

                                                          -            3,281              150              120             886              183             1,356             5,975             7,412            (1,436)      -19.4%

                  Salaries & Benefits                   230             411               104              -                   10           367              221              1,343             1,343                    1
                  Cost of Goods Sold                      -            2,469              -                -               -                 -                -               2,469             3,087              (617)
                  Other Operating Costs                       15        332                   19               14          157              (446)            181               271               372               (101)
                  Scholarships & Bursaries                -              -                -                -               -                      5           -                      5                 5            -
                  Debt Service Costs                      -              -                -                -               -                     14          200               214               214                -
                  Amortization Expense                    -              -                -                -               -                 -                -                 -                 -                 -

                                                        245            3,212              122                  14          167               (60)            602              4,303             5,021              (717)      -14.3%

               Interfund Transfers:
                  Capital Allocations                     -              -                -                -               -                     45          493               538              1,132              (594)      -52.5%

               Fund Balance                     $      (245) $               68   $           28   $       106      $      719      $       197       $      261       $      1,134      $      1,259      $       (125)       -9.9%

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                                                                                                                                                                                                                                                                  SCHEDULE 3


2021/22 Budget Planning Principles

The Consolidated Budget Plan is the mechanism for allocating resources to achieve the university’s Education Plan
and related supporting plans. It ensures financial resources are aligned with the institution’s priorities and areas of

Budget Principles

The following principles are used to guide budget decisions.

     1. We will be transparent and accountable in our decision making. Budget decisions will be evidence
          based and will be guided by a consultative process.

     2. We will align resources with our strategic goals. Budget allocations will be aligned with university
          strategic goals and related supporting plans. We will selectively invest in those areas that are
          strategically important to the university.

     3. We will develop a budget that considers the relationship between support costs and
          instructional delivery. Faculty and support services will be aligned with consolidated
          enrolment plans.

     4. We will encourage revenue generating activities, mindful of our capacity and constraints in keeping
          with our budget principles and strategic goals. Entrepreneurial activities will be encouraged where a
          net gain is projected within an acceptable risk‐tolerance level.

     5. We will support the long-term financial sustainability of the university. UFV must ensure that the
          rate of future cost growth is in line with the rate of revenue growth. Opportunities that increase
          efficiency while maintaining quality will be given priority.

     6. We will recognize the importance of comprehensive programming, mindful of the need to
          respond to strategic directions and student needs.

     7. We will take a strategic perspective in our hiring decisions. Position changes will be mindful and
          respectful of the impact on individuals, departments and institutional priorities. Vacancies will not
          be filled automatically allowing for limited resources to be allocated according to institutional

     8. We will promote academic and service quality in our planning. Programs and support services will
          reflect our commitment to excellence and student success for all students.

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