Rating Repo rt K <eport Llote: Oc.:l •J !JCI 13, ;;0: l Pr ~vlnu<. R" l )l"lrf: Jult :n . 1l ll 0 Ana l ysiu 1 1111 11 ,:; N ya r lin + 1 4 1~ ~97 740 8 j 'l'(a rkrwQ., t1 hr <1.ro r- And r ew 1- itzpetrick 1 I 'I 16 ~<')1 7.l 7i a· 1 tzi:: a tnck@dbro c ~m Th e Un i ve r.s i ty OL ~en·s uni•,ersiw is a 1·1id ,;it •!tl in•.!ih 1l i, !' 1 ~,; tablist,9•:i ir :~'-: tt 10 ·1a r:halTP.r !'If Q11 .o:P.n V1dut Id, LXd l '>l1 II' !(inc1: ~n. Ont:.ric, a C 1:1.,; ,l'; lr' : :I U lf H! il.1 11 a Na of a bc ut l !J :!, '.14-j l"'l'!Sit!F:Ot:<t ;. r fhP: n o1U1 1:. r; l"111 11 t:l!' J cl t ~ke un: ario, the v u· •,1.;1 :.i l1 off 1: 1:. J (.U/11 1,111:!h lil lS l \' f:1 1 .Jll\, i:I cl u nde l"(l radu ate. ,; r ;: ri 1 :\t~ :-1n ,1 orotes; 1 :,n~I or-:•~rems -n ;,, \t u.1.o:nt rinr,ulatinn ul l9,t6S na, 111 2Clf ). .!0 11. Recen t Actions July J1, ) 0 I 0 )cw 111,11<1•J 1:!l.l Qu een 's TJnivers it y Riltini;: OcLl senior u nscc· un ::d D~bt Rllli ni;: 1:pclate R< :ll inv AA Ralinu Ac.:liuu c on ftim,:-d Trc ur. l S~blc· DBRS )ms <. ·0 11. !i 1u1 :. · <l U1 <. · SL ·.uior TJn -: L~t·un xJ Dd >l rn (iug <. ·,f Qu..::. '11' s Uui \t · :. '1mty (Qm: <. ·u's or U1.,; Univcr s:il:( t t1l AA. Th e tren<l is Sr i:.hle. n e~pite the co11 tinm1tion ,;f clrn llenp:i ng op erMi np. cond;tion:. ,) the l hll·verslt y 1 s s:o hcl ~n 1• k1 uk pl'Llfik um.I ~lroug L 'tH .lo',\' lU:. '1il rcsour<. · <. ·s prnvi<.k l\: ~m .. ~ucc to Ut t: L 'rt ·•.H l. M. OLl..:d Iulu1 ,: l>orrowi ug needs aud a r enewed co1ll!l liauent to oo lance the 1.md_ ~et by 2012-13 v.ill help stabi lize the credit profile ill tile s.lK\l'l lo lllt';(li lJ UJ ,~nu. Queen' s posr ed an $8,7 million operatiu~ deficit in 20!C l-L I. Reveuue rose on account of 2 .9% e 11rolmen t gww th ;wd t ui tion r~ m .. · r~t :.l t". ,. v, .. hid 1 be l ~U l>L1 usl llliliuu. r t- wuu::": by 6%. A 1·1:1111::w~ 1,, • <.\uuuitu1 ,::111 l lt1 re,1 rain costs helped to lilllit t lie gr ov. 1 11 in sala, ies and be uefi ts to just O.S% in 201 0· 11, dO'.\l l from a 9% iu .. -re;1 :; ~ ll1 U1 i::' pr~· • .:ious )' ~ .Jl' (4% l:.'!X du diug p t-usiou ~xpt-u-;t"s) . T li~ d d.ll bunh:u t·ouliuu::'O lo µul pr t>SSLIJ't' ou the cre dit profile. 1i sil~ ~ by 23% to $237.7 miilion. or $11.967 on a per foll -rime equivalent (FTC) basis, ~y A pril :lO, 2011: bowi:- .v er, tbi5 in c- r,eas,e was already fact or,ed juro last y .ear ·s r~ ;: iug. down1uade. Cud owme-n t per FT C, which now s its at over $Z6.000, r,mi aim t ile llighesr amongH DDRS•rated universities, au d bas ubound.e .d cons1der~bly sin c- ,e thc- financial u1. v k,ets downturn in 2008-09. How.ever, receut ~tock mMke.t 'v oh1lihly will p ul l t<. 'W prt·ss tl.i.'<. '> ou i, fort h<.'r rc<. ·ov<. ·ry . T !J .; Uui vt T 'iily's i ll l t:.rt~l l' OVL ·rug ..: nnio trns u Js t1 fumed up. foilov: i n~ M'O years of ne~ative-results. and sits at a more-adequate J. l times. Based on n r, zc,~u c~ tiuwrc. Qnccn·s unt nodcd p ension liabihrt is uow ov~ $300 million,, \Vllicb caus es coucern given the potemial illipac! of rii ilijt comrib11tions oa cash fl ows. Rece n tly cou,luded collective ~,gi· ,::1~11Jt:'uls w1Ut fo ur 1~u· gt' t°'lll}' Joyl::' ~ gwuvs (im:lm .fi ng lhe fat·u !l y as -.,m: ia liuu) iud ud::": iutr t:>~l ')i::.'!(I t"" ~ .upJoy::':t' pensiou con tibutiom, in an effort to address the plan's ;u;tai11allility. In addition to s~ ttili .~ a pattem for upcomi.u.~ Ja bour .u.egotiations. tlus de- .ve.Jop me-nt should allow th~ Un ive-rsity to qu~lify for tb,e ne- w provincial peusiou 1olvency re liefpro,2ram. (Continued on page 2.) Rnting Con~lderntlons S11..:u~ •bs ( 1) One of Canada 's !l a g1bip posr-s e, oudary in~tia1t i r1 n'i (2) Very h;~h l~ v- ,1 of expendable l' CSOU !' ecs (:i) lnimrlnction of mo re prndent managem.ent practic e!• (4) Succcssl\ JI !\1 ndrai ;i 11g opc rnlions ( .5) Snnn<l enrolment 0 11llook in Ontario Financial Information Cbalk11l!< • (!) S ize able post- employment liabilitiei (1) Rel .i tivcly hi ~h deht lmrdcn (3) !vlou111i ng salary pressures (4) 1.,mited tnitinn-fee :.;ert ing an1\ 1nomy F or r:l i? year ..-n do?d Apr il 3 (1 Up1t1.t liug ~w pfa -i:t ( J,,.,J:. <. ·il) ($ U!iUiOH);) Lo up;-t erm. debt ($ m illion s) L. tt ~r i? st ,:,, v o?n g,e r ;.fio ( tUui?'I> ) Tolal (.~l.l c.k>\, ~m:ul ($ udh ow ;;. ~ To ta l i?nro lm.ent ( FTEs)* 8 L o ug; l t: UU ,.k:lil v -:- 1 tT C ($) F n:iow tn <"1H r l" f' FTF. (~) ::? 01 0- :? 0 l 1 (:S . .') ?? ,.. '? -- ·, .. J. l 557.S l ~). 86$ 11.90'/ ?f- _O77 2 00 ~"<! 010 ( :• . l ) l: '.'1 :? ,.6 (0 .9 ) 327.2 19, .:! 98 l iJ.U;H ,- . , P l 200&-200!) 2007-2 00 t 20 06 - 200 7 ( 2 .1 ) U.' / 3 8.4 1 10.1 ~ ')?, . 7 !)4 .U (< ).l) 4.5 13 . l ·1 <i<i .3 (j 2 1.$ <i19 .5 1S. 03 5 17 .B: 0 5- ! 7. 74 5- .• l'I I :, _2 ,( ,, J ) .~-9 (, ".1 ,) ,0 ?., ; ,s . i1~9 1 t'i, 1Si1"
Transcript
Ratin g Report
K<eport Llote: Oc.:l•J !JCI 13, ;;0: l
Pr~vlnu<. R" l)l"lrf : Ju l t :n . 1lll 0
Anal ysiu 1111111,:; Nyarlin
+ 1 4 1~ ~97 7408 j 'l'(a rkrwQ.,t1hr<1.ro r-
Andrew 1-itzpet r ic k 1 I 'I 16 ~<')1 7.l 7i
a·1tzi::atnck@dbro c ~m
The Univer.s ity OL~en·s uni•, ersiw is a 1·1id ,;it •!tl in•.!ih 1l i,!'1
~,; tabl ist,9•:i i r :~'-: t t 10·1a r:ha lTP.r !'If Q11.o:P.n
V1d ut Id, LXdl '>l1 II' !(inc1:~n. Ont:.ric, a C 1:1.,; ,l'; lr' : :I U lfH! il.111
a Na of a bcut l !J:!, '.14-j l"'l'!Sit!F:Ot:<t ;.r f hP:
no1U11:.r; l"111 11 t:l!'J c l t ~ke un:ario, the v u· •,1.;1 :.il1 off 1:1:. J
(.U/11 1,111:!h lil lS l \' f:1 1.Jl l \, i:I c l undel"(l raduate. ,;r ;:ri 1:\t~ :-1n,1 orotes; 1:,n~I or-:•~rems -n ;,, \t u.1.o:nt rinr,ulatinn ul l 9 , t 6S na, 111 2Clf) .
.!0 11.
Recent Actions July J1, ) 0 I 0 ) c w 111,11<1•J 1:!l.l
Queen's TJniversity Riltini;:
OcLl s enior u nscc·un::d D~bt
Rlllini;: 1:pclate
R<:llinv AA
Ralinu Ac.:l iuu
c onftim,:-d Trcur.l S~blc·
DBRS )ms <.·011.!i1u1:.·<l U1<.· SL·.uior TJn-:L~t·unxJ Dd >l rn(iug <.·,f Qu..::.'11' s Uui \t·:.'1mty (Qm:<.·u's or U1.,; Univcrs:il:(t t1l AA. The tren<l is Sri:.hle. n e~pite the co11tinm1tion ,; f clrnllenp:ing ope rMinp. cond;tion:.,) the l hll·verslty 1s s:ohcl ~n1•k1uk pl'Llfik um.I ~lroug L'tH.lo',\'lU:.'1il rcsour<.·<.·s prnvi<.k l\: ~m .. ~ucc to Utt: L'rt·•.Hl. M .OLl..:d Iulu1,: l>orrowiug needs aud a renewed co1ll!lliauent to oolance the 1.md_~et by 2012-13 v.ill help stabilize the credit profile ill tile s.lK\l'l lo lllt';(li lJUJ ,~nu.
Queen's posred an $8,7 million operatiu~ deficit in 20!Cl-L I. Reveuue rose on account of 2.9% e11rolment gww th ;wd tuition r~ m .. ·r~t:.lt".,. v, .. hid 1 bel~U l>L1usl llliliuu. rt-wu u::": by 6%. A 1·1:1111::w~ 1,,•<.\uuuitu1,::111l lt1 re,1rain costs helped to lilllit tlie grov.111 in sala,ies and beuefits to just O.S% in 201 0·11, dO'.\l l from a 9% iu .. -re;1:;~ ll1 U1i::' pr~· • .:ious )'~ .Jl' (4% l:.'!Xdudiug p t-usiou ~xpt-u-;t"s) . Tli~ d d.ll bunh:u t·ouliuu::'O lo µul prt>SSLIJ't' ou the credit profile. 1isil~~ by 23% to $237.7 miilion. or $11.967 on a per foll-rime equivalent (FTC) basis, ~y April :lO, 2011: bowi:-.ver, tbi5 inc-r,eas,e w as a lready factor,ed juro last y.ear·s r~;:iug. down1uade. Cudowme-nt per FTC, which now sits at over $Z6.000, r,miaim tile llighesr amongH DDRS•rated universities, aud bas ubound.e.d con s1der~bly sinc-,e thc- financial u1.v k,ets downturn in 2008-09. How.ever, receut ~tock mMke.t 'voh1lihly will pul l t<.' W prt·sstl.i.'<.' > ou i, forth<.'r rc<.·ov<.·ry. T !J.; UuivtT'iily' s illlt:.rt~l l'OVL·rug..: nnio trns uJst1 fumed up. foilov:in~ M'O years of ne~ative-results. and sits at a more-adequate J . l times.
Based on n r,zc,~u c~tiuwrc. Qnccn·s untnodcd pension liabihrt is uow ov~ $300 million,, \Vllicb causes coucern given the potemial illipac! of riiilijt comrib11tions oa cash flows. Recently cou,luded collective ~,gi·,::1~11Jt:'uls w1Ut four 1~u·gt' t°'lll}'Joyl::'~ gwuvs (im:lm.fing lhe fat·u!ly as-.,m:ialiuu) iud ud::": iut rt:>~l')i::.'!(I t""~.upJoy::':t' pensiou contibutiom, in an effort to address the plan 's ;u;tai11allility. In addition to s~ttili.~ a pattem for upcomi.u.~ Jabour .u.egotiations. tlus de-.ve.Jopme-nt should allow th~ Unive-rsity to qu~lify for tb,e ne-w provincial peusiou 1olvency reliefpro,2ram. (Continued on page 2.)
Rnting Con~lderntlons
S11..:u~•bs ( 1) One of Canada's !lag1bip posr-se,oudary
in~tia1t ir1n'i (2) Very h;~h l~v-, 1 of expendable l'CSOU!'ecs (:i) lnimrlnct ion of more prndent managem.ent practice!• (4) Succcssl\JI !\1ndrai;i11g opcrnlions (.5) Snnn<l enrolment 011llook in Ontario
Qu~i:>n 's pwj~t·ls a lmJgel dit.fidt i!J :w ll -1'.l; bov,tiw r, ._.,cvt-1·~t1 uew uwuagi::'lucu l vr:K·.liL'i::S lrnv~ l>ea1 initialed in nrder to 11chieve a h..tl.:mced operruing 1:m1.Q:et hy 20 12~ B . The~e new mea.snre~ ilre inrenrled to genern.re addirioaal revenue, rind spending ctticicn,zizs and contain labour co;ts. Nooctbclcss. rcsrorin~ balance w ill ll: Vt':f}' d KtlJi::11giug, J ut': iu par l lo ri-,i:ug p~usiuu t-X(J i::1.L-; t--; ~mJ lhit. r~-:.lli ctiu1L-; iu1po-..€d uu lmtiuu ll1t rt>-<1..:.::;;. by ,tic l'roviilcc (It Ontario (rile l'rovmcc: rared A 'I. (low) Stable by DBRS). As a rc,1111, incrcaii11g -::nrolmcm is one of the fi:-.w optious. the University ,,·ill have to boost rev,mues, although Que-en•~- has one of the: most .::on::er ,1ath·e enrolment $.t'rllte.gie~ ;unon~ nnR S-r;;te<l univ~-sitie~, v.i th <mly 100 a(l(tit1(\nal fi~ t •year w1<li:rgn«.lu.ult: slml:.:uh vtm.w(.:d for 21) ll-12. If U1<.: pr<A•im:ial li.u1 .. liu~ lllud;;.:J pi.:rsh t~. lll..: cun '<.:u l shttus quo may prove 11.m.-;u ~t.1.i11..1b!.e. Overall, UJ:Hl ~ is encourag..ed by the r~ 1ve shown by th.e University in addriessin~ ~hallen1tes thu; far. but notes That ils credit profile remains u11der prem 1re and little room is k ft for new debt, ll1 Jiighl oflhi: 1.n.:u:nou .. l~{ic,; if mul ti~ tl ._,vi.:ru(u1g c.:uvi:rvtw.l\:ut.
H:1 tlng Consldernttom Detail~
S ln·u~lh.5 ( 1) .4. ve1:.,• :.uong repmarion .:in<l II long hisrnry of academic exc1:-llen,e pmvirle ~:rrnn.Q: $.1tpporr for enrolment and tnndrai~in.~ activities. The University is intc;ruationally kno·wn and has som~ oi' the lu~ll~sr admission stan'111nis in C11n11'1;;, ,vhich leave$ room to gmv: enrnln1enr if nece:.s;iry. Tile avera.Q:e entering grnrl1:- Ill
Queeu·s is am01~2 the bi_~est in tlie commy. at 87.9% ill 20 IO•ll .
(2) t).ueen'$: has tl1e larg.esr t ndt)wmenr limrl per r,m among nnRS•r-Afed 1mivt r.::itie::-,. anrl access to ,; ver $4(1(1 million in cxpcodaM, rcso,u-ccs. which l>y Ap1il 30, 2011. included $210 milJi(lll ill rcscrv-::s (primarily departu1eutal cany-fo1ward funds) and $ 1!i 5 milJion in inte-rually restrictc:.d .endowme-nt asse.ts that co\llcl be t111endowe:<l,_ if needed.
(:i) l he Universjt;t has introch1i::ecl several key mea~ure~- me~int to e11tr.eJ1c.b pn 1dem fi5cal man.1.~e-ment pnu.:licc.·s umJ ,:.'11<.·ourn~,:.: d(.:pm·lw;;.:uh1J sy..:m.liul( n:~lrui11l. Thi.:~:.: 111:.:w:;ur<:'$ iui:lud:.: ti. llu·c~•y,:.:ur IJm.J~c.:( p:a1utlu~ frnme.wo1·k, iuitiate-cl in the 2009-JO budget year, a 110:-w Provost mode-I, aud the cr.eatfon of a joint Senare•Doa.-d committee with rbe imentioa of tackliu.~ on~oin~ operating budµ et pres~1.1fe~ ..
(4) Over the p:1~t fc.w ye.u !-, Queen' '- h:is lmHr up it!- fnndmising c.1p:icity thro11gh new le,1.dership., ;m increas~ worktorce and more sopllistica1ed data milun~ teclilliqt.ie$ to tap its al\Ullfil base. The Univ<m ty's prc..'.vious \.'t-1U1J.mi~1, n 1mpktt·d u1 AIJlil :wo::>. gn.'.dlly i:.xc:c..· .. ~d::<l il,; l;;:li.)O urillfou lNrgcl. Hm.l ph1us i1r"· \.'lo1·1.:u t1y underway to launch a mnch larger c11mp.lign. Rl?ased o n past $.1tcce::se.~ the lJniver~.iry,s ne.w fnn<lr.li~ing '-'HUlJ.1mgu h ,;,~xp::c.·l\.'d l<.i pru \tiJc t-1 po,;iliH IJ-u,;,,st L._, fulm··:.· rcYC..'.UUi.'S.
(~) Solid dcmo~rapllic ~rowth in the 18-24 :,rcar--0ld t pc ~� UP and risin.~ rcquircm~nts t� r uaiv•~'Sitt t'dm.-alwu iu l11c labour rnarkel will ht'-lj> -suvpo11 ~ .u:0Ju10:u l going forw:ud. Sl~tti..:lk s C:.n~it.lJ proj~cls ir,cre:ti:.ing <lemand for nnivt r.::ity enrolment in Ont;irio nmil mnghly '201 J . 1.1. Qneen'~ pfan~ ro .g:mw lJlldcr-grnduatc cnrohncm onJy mo..icstly. bm strong dcn:umd \Viti support enrolment sts:.bilir; and give rhc Univer~-ity tl exibility to ioi:r.east e.urolment jf 11ee-d~d.
Chalku~,-. (1) A p,; limioruy ac tua rial vah1::1tion in . .l.n~.11.~t 2010 pmj ecterl 11 $32~ rn1llion pen:;foil pfan c1e'fi·~it, np from $24.9 uillliou as of Au!!usl 31! 2008. h 1<.:r..:~1,t.:J }.Ji.'Usiou :..:011bibutic..•u;; w;;.:r•:.: l:t lQ'<.:·:..'(.l UJ.K•ll a; pnrl. of l'\:C~ut labour a,g.r.e.elllenrs with ~evi:,-rnl .employt~ ~ oups, which should help the TJuh-ersky qualify for thi:-. provi.J.K i.al pension solvency relief pro.c:ram.
(2) :\t .1pp roxim.1tely $ 12,000 per FTF, .lf 1'\pril .W, 2011.,. rl-eht ifi hi!?h refotive to other DRR~-rat-ed mliversities, aud hai ,isen subsraotially due lo Jar.:;;e1•rtia11-expected !inanci11,~ n~ ds !i:>r capital pr~jects. Qu,;,·1.:u·s ifo l·s uol ftll'i.".~;,.•. rnisi.ug udJilk-m1! <.1 1..~bt, aml wiU1QUl fuU fuu<li.ug. uo u,;,•w t'Hj>llaJ prt1j1..~\.'l;. 'Nill Lt:.· 11pproverl.
) Pu h li1 Fi mu 11:f> : llu iVo-!f~;ili.-:~;
Queen's Universit y
1<ep or t L\ote:
o crot:!f' 13, 20 H
(J) Qneen)$,, must con)J)ete ,vlth t)iher high-profi le ins::rinui~"ll\5-. in N~)1t h Americ;i for facnlty, which leacl:: to si~titicam ~alary pressures. In some µrote-ssional tacultie:s. sra11in.2 salaries have risen as nmcll as 50% in r<.:c;.;u( ;·i.:ur:;, Th<.: i1gilis fa<.:ull~ d~111ogt11}.lbi1.: will vul)' cxm.:c.:rlittlc: !hes,; J.irC~surc~ iu lb:: y...:ur.; uhc.-ad.
(·1) Si.J1c,e 2006·0i, Ontario nnivtrsities have-be:en limited rn a 5% avera~e-annual irn:re-a~e in mition tees. Wllilc.: lhh is ti <li.:Huitc.: ll11}.Jrl.lw1u .. 'Jtl ovc:r lb<: luitiou f r,;.;,t,;: Hm1 hud bi.:•:.:u ill pl1<:c.: p1t:vivu;l y. ,wiv<.:nilii.: .: mt: s llll Jt-Jl wiU1 !iu.tilt":d fit":.xibility to :.tJt1:r U.1i'> l'l' ll'->illt-J~tblt": n 1vt:'1a1t" s l.r t-:.w1. T his hJs lt-fl t'w·t•hm:'11l growlh JS one of few options avi'l il,1h:e rr1 nniv ,er:,itie:; ne-ed ing. ro incre.1r;e rev ,enne. in che face of ever,::;c,,1,u:in~ costs. The cm·rent n1it1,-,n fr11mework is hl p lace nnril 20 I I• 12, after whk:h point it is 1.mde;ir whar ch;to,gcs the Provine~ may make.
2010 2011 Op .. r:tting 1• .. 1·fonnanct'
Q11ecn's repMte11 a third cnnt:ecntivc:. coowli<late<l l(IS::!-, o f $S.69 mirnon in 20 I 0- 11. folfowing a : .. 5 1nillion h..'~ iu :.W-09 -10 . T ills L') 11 umrkt.:J iluprv'-' i.:mi.:ul~ btlw1.·v •:.1·i U'tltil (b(.: $6:l.7 milJioH lo:;s J>OStc.:d lll :lCi0:$-0 9.
111 2010-11. op,ratin~ r,v01ni.. rose by only 1.1%, as ..:urohucnl l{rvw(lJ 1Jf 2.9~·~ k1.l lo wt.·n:usi.:d ~ VVl.'l llllJl.'lll
optT~ttiug gr:.mb ~md slu1.leul ft":ti:.-. ,11 Wt'.11 :.t'> llight'.r ancillary revenues due to increased 1"1;-Sidtnceoccll))ancy. Doniiti� n rcvcnn,z; ,aw nNablc dcclillcs, UIIJU.H.lgh UJO~l of lhl' y1:~r-ovc.·r-y•::t1r d t '\.'Jl.'.dS\.' W!IS
attributoe.cl to J. larg~ don.,tiou of atl'J.•ork Lrl 2010. Tnve~t1ne11t in.:orn,e. aJi.:n <le-:::ilil-eri as ma1·kets cMrect~1 atter a strong rebolllld ill tinancial markets in 2009· 1 O, ul!J1<.ltigh rc.: tuu1~ wc.:rt.: s lill :;o!id iu :l<.H U- 11.
Tohtl ..:241:.:uJihnl.' '$ ~1-,:,:w by u mudc.:~I 1.6".'.-0, iu 2010-11~ Jowu fro111 tlJ t" 7. 7% llll'rt"::1-.:t' tixp1:rit'l!t't-d w th~ 1-1rt":..,ious
2 1.!XXl IA,000
l!'i,000
1] ,000 -
9,000 -
-
Toi.i i Enrolmi lll (FTE)
>>-
- -- -
y-e.tr. ~alaric~ ;m<l hcnefirs, whk·h make up ~wer half nf toii'll ,e,;p ,en,;e:-., gr,ew ~lightly, hy o. 5%. retlectin~ tll-e TJn1versity'$,, cominue<l eft01l to C()n1a1n wa!Ze ;in<l hc:nellr pre::snres. n mh amorti1.11rion 11nrl lmercsr expeilr.e continued to Ii,;c. with intcr,::st cxpcns~ scctn~ an 86'}'<1 iucrca&e due to incrcas.:d iuvcstmcot in ct pital assets and rt·sulliug dl'l11. ~upplil·':- im,:J uru1t;r 1.-qu4'm1.·ul <.:xpt·u~ ~ pro r idt·d u 111ll101· t1ff>:.1.·.1. HS did shu.kul ~id, ti!Hmugh Utt· TJn1vers1ty i;lfcods to pay ,-,ur the. unspent ai rl rl<'llan:: in fnnu-e year~. Dti1;;,rtmental spen<tiog re."'1·:tint an<l ::,;iving~ 011 utilities trom more emciem equipment and ti>lward comracts provided an additional butler.
DRRS notoes that, st11rting in 2009· W. Sonthe-a~rern n nrario A.ca.demic lvferlic.al Associruion (SRAMO) o~rntiou~ Nr•:.: uv lougi.'l· ..:tip lw:c.:d iu lb:.: L.uiv,:,:1~ity•~ fiuarn: iul stc1li.:u1<.:11(,;. wlri..:J1 ~ cou~i:;l<:ut ~vith othi.:r tutive-r~-ities in the s.e-ctru ,vith hospiral op-erntions.
Oprrali ng Oullook
•Tfle operating lmdgeJ fr prnpant,f ammally w1d c:ce,·cnmv,• }Ur <1buuJ 50% of cum;u/ida{ed (!,\f)emiitures. II cuH,irs !Jui acmfom,•c ud!Vt!ws u/ flw Umv(,rs,ty. 1! c, cimh.~ unct!lmy up:.nrt,uns, wluch are nm u,, a i 'OSI
rnrm:1-?1)' ha.fii't~ as well as n !s1-:11rr.h~ rnpital and fimdrai.~ing f'.m¥;lapes.
Smnmary )1u..:h lik~ urnuy olh~, · L>J:m.S-rittt.:J turiv<:r,ili(.::;. U1c 1 0 11-1:.i: liudg(.:I ul (.2u1.:i.:11's prvj<.:c;l~ au op<.:rtthu~ tli.:fo.:it of $ 1-1 .2 mili10;l. The: hm1get ::.;niClpAfes h">ml revenue gl"('IWth (If ,1'U• over rhe pre,.i mt$,, ye;;.r1 ~ hm1g,et. dne to higher mitioa receipt.; and pro·\illcial ~rant :thnding. Tuition re:1:enues arc; tOrc:cast to ~row by 7.9-~~·~. owin~ to a ..:1.m11Jiuuliou 1,.'f f;.'<.' il.ti;n:~i.;1;s HUd i.:OU')<.:r'-' itliv~ t.;1u·1.'hrn:.:ul ~rov, U1 ._,f 1. 71?/4:I. V1Jv<.:1Uil1i.:11t gnml.; cu·~ cxpc.,:.:1:.xl lo provide only a mod.e-.st boost to rev,em1e.s, rising by 1.6%. l 'I,. change in pofo:y allo·wi.ng ancillary se-rvicoes to renrrn ;·1. di..-id-enrl h1 the t Jn ivcr~ity i:; i'll:-o expe(t,ed to hi'lve ;·1. positive eff-ecc on th-e opoernting hnc1gec. Tnvestment 1nc,-,n,e IIJ\11 ail othe-r revenue:: ;ire e,;pecrcrl m 11t ci1nc. Operarinµ. expen11.1nwet: i:.hm1irl ri~e hy 1. i '% , <lne mainly m au cxpccood SS million special pension payment, and inilationary labour and other cost prcssru·•~ .
J 1-'ubhc I inance : universities
Queen 's Unive rsitv
Keport oate : ocrober n , 2ou
i\·f Hllum T trtn Out look Queen's has , rn,ed its int:ntiou re balance its budge, l>y 2012· 13. a year ea!'tiel' ,hau anticipated. To this end, lb<.: Uuh'1:rsi 1.y i.ull'OdlU.:(.;d i1, 11(.;W vhlwu.u~ fnuncwv1J:. ·.,·i tli U1:.: :l009-l O IJud~i.·l~ iu lc.:ml:.:d I.<-' lm.:klc ougviu~ t1p~rali11g vr~;sur~'>. 'fliis uo:w lhtm~wurk u1thu.l~-; :.1 11~,\ Provo,;t uwdo:1.. ~t>'A-'1Ed .Ho:.u<l-lo:vl:'1 iuilialh ·~•; m~ml to pl'Ovide .!Zfeate-r bndgera1y and compem-ation diriec-tion, de-partmental re-venue .:haring from increases in ,::urolu.1.(.'Ul uud luitivu. uud d i.ri.-.; l tutil n:svoa siOih li...:s 10r ,::mvlv: .. -:.~ ~ulmi ...::; aml l...:1.1.<.:fil.~. B:.:w.:!il;; ~liirh:d tv !Kt.Tut· iu '.l.010-11 , u,; ovc-~rnliug r.:.~;.u!l.:. ·,vcr~ posi livd y Hffoi:K·d by g:r<:{!lt·r <.lq.~u,1m:.'l1ltd S{J:.'11diug: r.:.·.strttiut This trie-nd i::. .e:q.-i,e.,:.te-.d to c-ontllme-, ie-spie-cially as thie- Uulve-r.s,ity atte-mpts to institutionalize- restraint by redncing nnit bud get .:.llocat ion'- hy 1.5% . T .lll)onr agreements w ere. recently ~ignect with fonr large. employee ~ronps (includin,c thee taculty asso;;iaClon). with mana~eabJe. ~ost inc.rea:es. Importamly, the ~ronps a~reed to increase pension coatributiollsi a vcty pc,3itivc dcvclop-.cncm in h~lu of risll1~ p~nsiou liabilities.
Qu e-..en ' s lnte-nds to drnv>' do,·vu iexisting ~mploye-e ftitnre bie-n ie-.fits and dc-partmiecutal carry-fosward rieservies, as well as rind oi:er $6 million in expenditure re-ductioas and/�r i'evenne ~eneratiou annually tor lhe ue-x:r te-w yctu-:; iu <ndcr Iv ti...:hi..:vc ttu<l uuiw htiu ii lmlnm::.:<l lmJ.s1.:l. Si.·vi.Tul ;;ln llt:Sii.: phmnil~ wc:...:tlll~ bav(.; bt.'<.:11 h<.:l<l v, il.11 s.::ufor ofiida!,; l<., t':Xpku·i:' • .. ar ious l'USl-rt-d m: lfou auJ r~vt-uue-ga 10:raliug idt"as lll 1.·Jt1~~ lli~ budget gap. hnr cnncrete initi,1tives have yet to he ,1.ppmverl.
The current provincial mition ,·e~im, expires at the end o t 201 l • 12, arler which poilli tb, re is nucffiainr; ,, i th r...:~~m.l Ct.> luiliou }>Vhi.:y uud fuw.Jiug. 'J'o uuuulttiu ils lli~b !:1 i.: t1d:.:111i(.' , lm1dtu'<ls. Ult: Uuivi;r.,ily (ms om.: v( U1i.• uwsl (."(.\ll>; t-rv:.1livti o:11IlJ!mti11I gnn.vlh s l.r:.tl t"g ifo ~lillllllg D.l:HlS-r:.tl~d u1llv~r~iti~•;. ;1Ubough its $lroug ~1<.·ad1:-.u.1k protile ,1,·ould Jikely ie:1111.hle it tt> ,a.row en1'nlm-t;lt ·,a.11th eM:e. A key challenge to grnwrh is rhe Universir;'s lillli{,~d classroom and residence space. Ho;v~v~r. rcvcnn~ ~ owth uad,zr lhc curr,znt uuivcrsi;:y rtmdu1~ sy.;rcm r"~uuilll.:. Jurgdy tk-tl lo ,;,·w·ohu1,.~u l giowU1. Ums lh<.· t.kd;;i<.•u lo hmil sluJ~ul gn>wtb wil! <.'<.mllluu.~ w ,vl'igb t.lll the- Uwve.rs-ity·s abtlit",Y to m.·u1.1ge- it,; operating sbortfalJ. Nouethelc-s.'<.>, new .e.1.u olme-nt and ac ... ,d e-mic- plans are be ing developed, 11nrl this ,:.,hnnlrl provi,t.e some cla rity vis--a•vis the: TJniversity ' '- g rm~rth strntegy in the face of flngo ing hnrlge r ch11Henpe~.
Capital l•roj{'Cls Th~ <~ueen' -:. l'e-n tu (1-'ba~c- 1) and School of Kin~siology •.,1,~ere complc-tecl in January 20Hl at a totJl ~os.1 of 5169 million. This was ml>$tamially more eY.pensive thau iuiiially platmed, with the shorttall co"ered by debt c:111U HU iulc.;nml lom1. As H n ::suJl of tU1.: O \....:rn!l:.:S 0 11 Phus1.: l uu<l lh1.: wi.·ak...:m:d <.'}.J(.;rntiug: cuvil:u1w11.:u(: Phc:1~s l. aucJ :{ of U1t> Qu::':i:u '~; l'1:,ulu tJ:.1v~ bt1,t"ll put uu 11<.•kl wlllle th~ '>l.O(J~ ~out ~•ffordabih ly of ll1e yJ'<Jjtit ls ;tre rc-as-:.e%ec1.
The $i' milliou Medical School Duildinµ and the $10 lllillion Dusiness School Ilxpausion are expected to be i.:i_•mpkl.t:t.l Uy full 20 11 uuJ. :;p1iug 2012. l'·~))t:c.;tivcly. Bo(h pwj (.:<.:l i r;.:umiu 1_1u Ornlg:..:l, wilh uo <l<.:lJl ui.•,;::ds aud U.1~ lm!mmc of fuu<liug 1_·.xpc1.·lcd lo 1.·o ull~ .fwm pri vulc d t111alious. Aloug will! lhc Ivkdk <1l St"JJ.U<.ll Building. the- $tj3 111iillion Isabel Bade.r C'c-utre for the Perfo1mll1g .:\.rts re-cei,;e(l s-iguitkaut gove-n uue-nt itltl-;1,,tn1cmrc µrnms. The pr~jccl Chl)cri~oczd delay; obtaioin.~ approvals ti'om tbc municipal 11.:-rita~~ society! v,bicb lms 1101 t1ffci.:l1:d lhc 1.:1_•111~k 1.iou <lult:~ tt!) well u;; co~l prt:s~urt:s! wlu<.:h will Lie uuumgi.::d t.,;; fiu<liug cvsl e:ffici.en.c1es lu the bmlding proc-e-s.s. ~ ne-..en's is a!so J.lfO-c;ee-cling wlili a '$35 nutiiou administrntwe- syste-ms replacemenr (the prnject' s bnrl.g:et w,1~ recentiy reviserl 11pw.1rrt hy $ 1. 5 mill ion), which is heing fnnrlerl annually th1·llu.c;h rhe oper~.ting hnrlget.
Si.u.u.l»r lo o lb1.:r Cum1dfou u1ilv<.:rsill·~~ ~ l!<.:l:IJ '!) llc:1s » ,i:.!...:uUJ1.: d...:fcncU umiul...:uau...:c l>ucklo~~ 1,;;.(wualc<l ttl ~134 m..ilJiou (inducling. rie-:sidc-nce-s. and othe-r i.nfrnstruc-n1I.e-) . ~ nee.n's is cLu-rent!y tJd dlng its Stag.ie l critical he..1ith :mrl !.afety-rel:ited cteferred m,1inten.1nce concern:;, :md ha~ ~pent .1lmoM all of the $32 miliion provided Uy 1.h (.: Pro vim.::.: s in:..:c.; 2007-(•8 for 1uuiul<.:mmi.:,:.: ut:i.:ds.
1 Public i-mance : un1vt rs1t1~s
Qu een·.s U11 ivcr.sily
Re1,11..,rl 0 11h:; Octob.ir 13, 2011
D<'bt and Liquidity
Th oe Un ive-rr>ity' ':- debt bun:l.en l1.1s. riseu ~harp ty sinct:"the 20()8 fh:cal y~ar as Qneen 'i:. has emharte<l on a number or si~ni1icant capirnl pro;-ccrs, lcadin1< dcbr to 11~~ Uy :r::>%, tu $'1'37.7 rnilliuu i.u LOli.)- 11 . T h~ u~w debt ,.vas rai~ed in the tb1u1 ot rn·o 30-year nores. At $ l l 196 7 J.' t.:l. J-'TJ:: :;tu<.!i.:ut~ ~tv.:..:11•:; \.h.: l..Jl b utd ..:11 h now abov ,e-aveerage-. relat iv,e to o thee-r D .l:H{S-rat,ed nnlve-N:irie,:. T h1,.ve\·ei-., the 1nte1'e.c;t cove;·ag;e rario ha.~ improved ro 3.1 limes, Iollowin.~ two , ~ars or ul·gulivL· n .. ~~u!ls.
n ne t ( ) imp;•ove<l c.:1pital 1n<1.l'ker ren1m::} the cndowm,oi !\Ind bas rebounded considc.-ably since i~ $,Hici3 million la w in 2-0<1Q. ri$-,ing hy 20% tn SSSi.6 million in 2<HO•ll . Th;s amomts ro s 2s ,o; ,
S10.000
57.500
s~.ouo
m
O~bc Per FTE .:.nd Inc.re-;,: Cover:ige
o:,: 1 L~ l1
:?OOS--07 21>)7-0S 2008-09 20®-10 201~ 11
~ Ucbf pcc vr1: (LllS)
~ Tnr~t m 11m.('i' (RHS)
- n .c,
- iJ.O
- 6.0
.'l. t1
Cl II
j e :E.
y1,,.1· FTE~ v1hic.:h i:; U.1,.: hu1~·~~• J.'~T :Hm.li.:ul 1.·1Klow1m.:ul tw1011~ DBRS-rnt,;,;<l uuiv1.:r.,i(i1.;~, m1<l ud<ls ..:uu:;i<.krnlJlc s\lpport to the rating. At y~.ar-end LO l l , Que-,en 's. ho.d acc.es.s. to $404 .4 million u1 ,expe-.udable r.esonrces, or l . 7 ti1ne; dehr. v:hid 1 cnnsisted f if $ IQ) millio n in internally re:stricrerl endowment aS$-,el$-., over which Qneen 's llas :lilU dis•c:retiou. and $210 milhon in m1remic!ed r~sei-,es (prinuui ly deparnnental carry•torward fi>nds), J:::'. .>:.pcw.lKbk rl-.sl;un:i;s have w 1p nJ Vt~t.l munud ly by 7<}0 0:1 a" ... ~rng:.~ tl\'l'l. U1c pu,;t d t'.C.'.t1t.l1: .. Cii,tJ and :d 1<.;rl-ll'lUJ iuvtstmtnts. also r~1naiu e-d strong at S6 6. J lllil lion.
How~vt:'r. ~ ut-~u •s uufuuded J.H:''lb iuu 1k-1lntif)' is h1<.·rea,;iug!y p utliug IJT~~ur~ <.u1 il~ tl}'t:'l~ttiug auJ fu1arn.'.fa) pnsitio n. !\ prel i m ina1y .'\ngm,r 201 (> acni.1r ial v:l.111.1.ri nn projected ,1 $.! 2 :i mil l ion pension <leficir. :1 m:iskerl iucre~s, fiom rite S.2'1.9 lllillion deficit (both 011 a solvency oasis) recorded in rile lasi plan valuation in 200S. A:uollJ(.:r \<u]u:-Hiou wus 1\:t.:1.·ully ~01uvlc.:li.:<l ou Augusl 311 2011. ullUough ri.:.,ul l.s !:II\: ~lil1 ~:.:m.lw g. J::::):pecrations are that the cle-fo: it will bt iu l ine with ;:h e .:!tH iJ .est inia;:,e .. As pa1i of r~-cent labour n.egotiations, r(m r large employee g roups ag,reed to increaSc pem:ion contrilmtio n$-., w h ic.h w ill help tn enhance rhe lo ng.• term susrniuabllity ot the plan. and assist the Uuiver.sirt ll1 quali.tJ inµ tor the Provinco:'s t~mporary solvency ro:Ht fprng.ram, introdtic-oed in Au.~\1st 2(>10. Undtr th,e o ew p rovi.nci;iJ progra1n , qu alifying nnive-r~itiies will b.e a ll\;we,1 t <' <it.fer solve;lt')' paymenrs for tl-.ree. yea~; a;l<l -..vlle-il payme-ncs •:::omrnence., tt1ey ·wm he amorti7e<I ov~r a tcn-yc ilr period rnth~r rban the curr•~nt tiv~. In order to qualify, univ-zrsitics 1mL<;,t show that th~y have laka1 .sl~ps lo JJUl llid.r pt:im;fou pl~ms ou :.t .... uslaiuab!~ fooling. De~pit1:1 lht:i p<..•t~utkd for ~ul\.t"11t·y rt-ht:-.!, Qneen·:; expcd!• p,1.ymenffi rn che. pension p l:iJ1 to increase hy $R million in 20 11- 12, t i 7 mill inn hy 20 13- 14 and S.H million , \·ben ,:.oivency pa;111eilt$ sta11. To ti.ind rhe-se additional payment~ .. Queen's has mcrease-d y1,,.11siouubk cvulribulious li'um ull d..:vm·luKuls by m1 uUi.litivmd l % .;,;Jl~t.:lh,c !vfoy 20 l l tmU by tu1 t11.L.lili<.1uul 3% on,e year latc>r. Any shortfaJl wiU be dra•Jtn from thie s g u1illion employee future b~uiefits r~~e-rve in :w J 1-12 and 20 12•1 :! .
In 2008, a new diebt n.\..-w.agi:-mem policy ,vas approved ro pmvi<le. gnidance on <feht nse and attordability. As ttl)tbligt,tcd in rllc t>ox lo lh t:i rigbt, polit·y ratios i:ut'.lud ~ nnre:.;rricte<I liqniriity-to-rlebt ,m<l dehr servi,;e-to,.operatiug ~xpeuse~.. aJtllouµh oth..:r 1111.i1,.1s such tt~ J cl>Hu-FTE will b1.:
monitor.ed as wiell ·111.ese-. ratio,; art r .eg nlarJy
Q m•l'll~'> Liuliili(y :\IHuugl'tocu l Pulkv
Tfo: w.·•.-.· l kl>l Muuug r_•w-.·ul Po fu:y 1:'>lnb!i:ilic~ t~m.1,.k-Ji.u<: :; fur lL.1:
u~..: uu <l aJli.m.lul>d tfy L,f d..:l>t Ti u: p -.,h ... ·y n: h._--._. 01!. (wu n 1bu;.
ll 11 n:':.-.l r irll·ll l .i11ui1lily-1.u-lh•hl ~ IUi lo 1.11
Dtbr Sen 1ce-to-Ope-rattog ~ })tUSes :5 J .ZS¾
re•,i ewed by tbo t:mversirf's :linance co11u1titTee aod repone<i to its board ot m1s1ees (!he Doard) at least ammull.y. Ad-.li tiouul!y. Utt· nllios '" ill I,;; <.'Olh i<k :rc:d iu UK· J:k 1a rtl i1pµrovu! pr<.it'l·s -:. for ._.•ad 1 prtlµos:.~d ut:·,v ( J.pital project. Tl~ policy ls subj tct ;:o ri:-.views at !.east iUUlu ally to ieur>,ue o.Hgiuueeur with th;,e C niv.ersiry's o~je.:tive t: aori the extemal envir<'nment.
:; Publlc finance: universit ies
Qu e.en 's IJuiv Hrsil y
n,epo,rt c1.ite : Oc.:lub ;1 13, 2011
Out1ook Over 90% of Qul:'en 's debt c onr,i!;r:s of tong-te rm cteh-entures coming cbte in 20j2 and 2040. n R R.S does not amicipatc tllat Quce1\"s w ill rais, ucw debt ov,r the sho11 !cmi, ao ih'1'•> arc no signiticant changes iu tb, c.1pit,1J pl.1n , .111<1 nn.~oing p rnje, ·is h,1ve c nnunitted lim<ling ,1nrl an::- clnr,e ro che ir -ftmdr:tis ing t,1rgec.:..,. a nrl l'Umpl~li<.lll. Tho:: Uuiv~ si ly routiuues to v~1u Utti devti!up1uti11l of a Tt-:.td 1iug Sp:.1l'i:: Cc.•u1p!i::.>x :mt.I :.\ u~,,., Cu~iaeel'iug Duildiu~. IIowe-ver1 in ligl1t of ongoin~ bu~era1-y pre-ssnres1 tlle Uuiversir; bas srated chat no uew µruJa:ts (iudu<liug l-'ll:b i::."S 2 and 3 of lh~ Qlli::."~.a' .; C~ulr~) will prVL'.t"i::."<.1 bi::."youd U.1.i::." pJawriug slag~ wirhom a fuU business case and couunirted ftmdin.c.
l ~11 ivt- rsify F11111li 11g iu 0 111>1riu
Canadian universitie-s generally have access to llir lx.~ kl'Y :;ourc~~ of n ·.H ~UUl' 1°<.lr th i.'ir coic ll'U\.'hing aud reseru:, h activities: (I) ~ovenunenr graots, (2) stm:lc-nt fees ,1nrl (3) fnnclraif;ing incnme. f or Queen',. tbc ,c acco\llltcd tor aoom S3% or rota! r-evenn es in 20 I 0- 1 I.
Stm the ma in r.onrce of revenne for 11n iv e1s1t1e~. provincial government rtmoing has sc,o its importance 1-e<lnce<l ove r tl1e pa!.t flec:lde in n nt.1rio aud in many orbor provi11c,s. due to provincial hn dger etl ts im rncbtc.erl in tl1e mkt-l 990s. In l'UUJpo::usaliou for lh i::- budge( l'UIS, Oul~uio universities were given ft.ill fee-seniu~ dis~.re.tion for J J':.Ul~t': u! -.h:,'ll::'gulal~d p11.lgJ':.Uus au-.1 v...~ri::."
2010- 2.0 1 l Con~Gl l dA ted RP-VP. nUf!. snu r c:P.~ (lul~I; $ 74 2 m illiun •)
u~ r ClO\ ' ' t
gr;mf!I++ ? t'l.0 %
?. l "t.,
allowed ro raise mitio11s rnl>strunially for those pro,i;rams. This led to an increase in the universities' reliance ou luition f~ ~mJ olhtiq .1ri•, a1~-IuuJiug SQut1.·es, ;t ':- ll<b O(:n,nt'd i.u <Jll!~r prov1m:t.-S.
Govenawent 1' umlJug (µ ruviuda1 ;mt.I !tiJo::ral 52%) iw.·Jll<.I~'> ( 1) OlJ!:rnliug .!_!,rauls. (:!) r:~Si::."<ffL'. ll gr :.mb ;md , ontracts, and (3) ;apiral grams. Operari11,a ~rams ru:e by far the most imponant aod Hable revenue source of che th ree. Operarinp. f.iJ t!Jl t~ ;u e prov ided excin $sively hy the 'Ptwdnce: primarily thmn.c.h a fr>rmnla rlrnt ullo,a,k s c1 <.:c.:tfoiu uuml><.;,r c.,f l>usi.<.: m;,;0101.· w.1.il:; t<., c-:-1;.:h slml<.:ut bu~c.:<l ou lh,; vro~1uu W whkh •.hc.:y nrc.: enrolled . T argeted fnnilinp.. i:: mainly ;i imerl at ex paJ1d inp e nrol1n -em in l1igh-rlemanrl prop.nun :.,, anrl p<.Tfonm1m.:c.:-l>mc.:d .grnuts 1:,c,;ouul for u ~umll. lhou~h grc.,wllltt~ pi-•rtiou of yrovim.:Ull opc:rntiug Ji.mdllJg.
) fo iu iluliou u<ljustruc.:ut i "> provitk:J iu l>m,; ov.;rutiug fuudiu~ iu Ou(mio. H <N1c.:vc.:1! 1.b,; Pro viu..:..: lrn.: prov ided Onri:.rin 11nive rs i6e~ w ith foll average lim rting for enrolment grrn.i.rrh . No sig.n iticanr new fnnrling c.:lrnu~i;:; lrnvc.: ln.:i.:u m ud..: :,:im:t.: Ou: 200 5-06 v1v viu,;iul liud~•;:L which li..>oslc-.l Lu1ivc.1-:;i ty fumliug iJ.1 rc s1xnis.; m the recrmm1e n<lation'- o f the fK)'-t•s& on,fary r-e-d ew. Also important are gove rn ment grant:., for re~.earch anrl capital proj i:scts . The federal .~ovenuuient ~eoerally aci:otmr~ for 65% to '75% of total public- .1.·,esearch fundin~. while tlle ProviJlce provides tile bulk of capital t\1ndi1~2. As pa11 ot' Its J:conomic A,tion Plru1 i1ltrod11ced ill Jaouaiy 1009, tbe fede-raJ gov.erru.nent cre-arecl ~1 ~:2 biti i.on Knowl,edg.e lnfrastrnc-ture l-'rogrn.u1 to fund up to 5Cr%, ot qualitYin~ capital expenses incun·~d by post-~ecoodary ll1sritntions across Canada by ?vfar•ch 31. 20 l l . T h t budget imroduced by tb~ Provii1i:-e in ~fa.1.-i:-h 2009 a lso com1Uitted $/ 80 n.U!lion ii1 capital fonding for ,:olle~es and nmversiries over a ~.-o-year peno4 which 1.vill bdp iostinnioos address a si$Dliticant portion of ;:b~h- growth and d~f~rred maii1tenani:-e needs. Ho•J.·,e•v~s, the-. large-r cle-.fo:-irs faced by ;:b ,e Province ov,er tbe yean to come point !o limited room tor opemit12 l\wdillg ,:.;1·owth.
8 1mkul 1' L'l'S ('.l8'YO): Tltl' ll1itiou r~giu.1.;; iulrti<lrn::.xl ilt .1.\1un:h :t0U6 UJ O uhm <J p\~lurils mriv<.:.rsilk> W il!i.'TC~'S~ 11verape. mit1oil fees hy np ro .':~1. annually he,c;inrllnp. in 20t)ri-20 07} with fee.•increa~ lim its va1ying <1C1-o~~, p1'<.1gnun~ mul Yl~t1rs of -,wJ;;. Ft1r l'Xttl!l}'k . arl.'S and sd(:.!Kl'. lui.tiuus nm lK~ i un c.•u:;:.xl by 4 5 %, fo1 l!K~ fir:;l ye11r of ~tnrly an<l. 'l'U, for the re,na;nin,c; y e.a;-:c;; t11h1 p:radn:ue an<l profe$.sion11 l pmµ.-ram tuit;o1l fee$: •~tin he im:r\.'M'Sl'.J Uy 8% for Iii\.· firs l )'l~tir of ':.ludy uuJ 4%:, llJ llll'. foUowiug Yl't1r:;. Ov,:.nH, howc.·n·r. H uu1vc.·n:1t;{' s 11veraµ.e. tuition inc re;i~ will nor he. ;iJlowerl to exce e<l 'S~·l,. TI1e. frame.wort w a:: 01i ~ rlally ~et to exp ire. in
o l'ubhc ~mance: u nivers1t1~
Queen '.s l h 1iv crs i l y
K<ePOrt Llol e : (J<:f()h <sr 1.1, ?O I I
2009-10 but w as rcc~n rly ~xte:ad~d tor r,..vo more years until 2011-12 , after ._-.,11.ii:·b p-owt it 1,;. und .ear whether rhe Proviu,e will ch1u~~e rhe re,i;t1la!ion. Fut ~u~~u•s, (uitious hu:r~:.tst:i<l IJ!' U1t' u1~Lxiluum a llowable in 20 I 0-1 I.
Fundratstng and Endowmtnt Co11t11butlons (2%): Uw·~~lJ·ll'lt:id dou~tlioas ar-= rt'<.'ogui:L~d as rt:ivt:iuut:': when 1't ce1ve<l. Jinnds rece1ve<l ·with t'.\lema I ri.:slliclic.ms un; r·:.:pt>rh:d as r..,.",;uu<.: v,b(.;U n.:lalc.:<l ex pen~es are inc-nrred . Donor:: nr the Board can also endow oouations. Tbc cndowmc-m gcncrare:s annm1I revenue: which is rer,<)11t rl as inve..c;tment im:omi,; or ;,:hdrg_o.:d d in:t.:tly (o o.:u<l<.'w1w.:ul tt,s:.:ls.
Qu~cn's is curr~uuy in the plflm1iJ1~ sta~~s ot' 1rs Lnrgcst rtmdl'aisiug crunpa1gu to dat,~. The Univci'Sir;'s mo;t re, ~ut cainp~igu ended l.11 1003 aud r~ijs.e,cl more than $:!50 miJLion., weU abov~ the ori~lllo.l targ~( of $'.WO miUion. New leadership, expa11ded human resources a11d improved data miu.ing techniques have allowed tile iustilulic.•u to gr~Hly iutrt:'a~ dou~ttwus iu r~<.'t:'llt ;,·~;trs, aw.I Utt> u~w t·a1upaig11 is ~,q~..:l~J lo r:.ti•;~ a u1il1iluu1n of$25t1 millit;n o·ver five years. ~1ore()Yet,. inv~~tmenr ren1ms; h11vc: rehonn<le<l an<l ~1nce a}!.a in 1nc·1'eased the: ~iLc of lhc (.'J.l<lo• . .\' UJ•;u( <JV\:I the lu:;l y.;;ttr . Pdyol&.I to U1:.: op-.:n1ti.ug fou<l <.:ouliuuo; -$ lo b,; fairly slubk :;w~:.: lh:.: current policy is to dere1uline tlle payout based iar'jl:d y on the prior year plus inflation. A strate~ c revie-..v of Ute ~udowu.it"ul foud is uuderw:.1y~ w1U1 v~u·li<.-ular ~-mpllasis ou as.-;~l mix aud 1.x-1yuul vu!fry, ~u1tl wil! Li~ con1plere ,1 hy fall 20 11, after which reco,nme 11<lations w ill he impleme11terl. At $28:;077 pe r rrfi'.: as of April 30. 201 1. 01:.: Uuivc.-rsit{~ (.;U<lovvw1.:ul u:;>i:ls nn: tb.;; lurgi.:st muoug DBRS-rnli.:d w.1i ·.·1.·r~il.i(,; ,. vr<,.'vidiug co n~irlernhle snppo rr to tntal re-~·em1es compar-e,t w irh nther nniver$:it ies in the Prov ince.
I !'ubl1c t nanc~; u n1versrt1es
Qlli'!Plll ' .c;.
University
Re1>0 1t D~t e; Oct,:,ber 13, 20U
Queen's Univenily
<..:uu.s ulidotlf..• 4..1 .BaJam.~..,. ·Sltl't '. t
k l'p.ll i Y 111 r .i plt:ll :l!..':P tt. 191,0 :, ri ·.~) '1 ,.1 '{.) :, :,v. I,)(')'{ 19 ·.;,0 ·10 1,n .x:,.:,
l f111 ~ ;(1 it · l.t",l 11!'!L a~.-;l'IL!• ( ?. l O;). I 5 ) (~J i l ,<i79) ( ? :50 , 9 119 ) ( 15 0 ,9 6 &) ( 11 0 , ~ W )
Total Ll :ebilit) · a n d Equ i ty 1,706,029 1.569.965 1,342,070 1.513.4J7 l.334,6 86
Oth 4!r Oblia atio u s ( $ thowanch) 2 01 1 2 010 2009 2-llOS • 2 0 07
( '.npttnl (','\nlllHltU(';lt~ 1:~ti,'): i l 164; , H}{ ·19 ,{)6 }; 1 •i lJ ,0 1J') •..-~.) , H',1.6
1'.:-0,10 0 p lan defic it (1f ru.ty ) ( I) 2 4 .~JOU 24.~>00 1 4 ,900
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(5) As o t 200? . equity in a a-sets u:\•csrc.d :'l: u 9ira l :s reeo ~ .d, ·Jnd-:rco inmiu-:d t..w4-: (Sj F.ittr 1n A lty~!'< • , ;,r•t'.d ~ ndr. •).'fYI M\t 11 !'< :; ~U r.,ut :1~ t t'1 ( fttri ti,: t h ll1 *""· .ll '.lh jl'r r HI t ·:'!'<. • , ;,r,• ifl f'\ ll im pr. t; t: rl b y t h •:' d (l. n ,i.n
'""Niil lly-tr..ll rnt': rt: rl l".1\d(l ·.,.:m t:n r I< !\. !< r. t:: ll t',"; fu t'ld :1 ·.1:h ,"I, r. U.ll ('; h t~ r. H ir.1,";d ;,r r.M11 ll•1 h •;1h t: 'Rr. • 1-d n fTn: , t~ (';!'<
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ConM>lirl3 tPcl F in3n t'b 1 Sm n m31'' ' (DBRS.adju~t c:d) (S fr,,n:.Mo o1:.} For 1hc-. \t-;.verd Ni .°'('ml %
201 0 -1011 2,00_9-10 l !)H 1-0VS-!OO~ 200"-1006; 1006-! VO:'
G ro:c.~ C':aptt.11 F.~pHullturP~ 9 5.81 / 1 D ./ 19 1.11:as l (.<l.m 1•1.0'J'.;,
"fa 1CJJ '/ :.!Oil¥. ~ en' ! 4d: pto:I ~~ ·.v, b :.ld.;z:r:. r : .; :i:c:u:.,- tr. =Ntu:.cnf of !i1u.n(U.! uml'l,m:,:n,:s :»d Ill)',\' r e:(•f llU <t$ ~·;mull :,eC , au:.~ od ~$t i 01-, Al U:.\t,t~-tn:,: i:.,:s
mA ".-.t~111::11l;i 1011~-:"°d. ..... In 2,jl)!). 2(110. Otlo:!1::1.H e:l :,.-«, 51:: J..MO op: ~tiOU.$ fMll ii:.UK ~ l r~U:.1S :t:i.d. re ~u : ,d 10, )S. 200~ •: (lll)ll)::-~th-e S p •:,1t1.
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~ •11lt-111eu t or Cu'>ll .tJon (D&;;-adiusl~J) For 1b~ year ended Ap ril 30
l -010-! 0ll !OC-9-! 010 ! 008-!(109 ( )1h "1:'lt 1:lP, b h nr,;:: b ;>fof t' funrl. 1~o n1nhl1t10 ll!: (~,t.x·1} ( ) _!));) (6? ,6XJ.)
Aw1.,1!i.:atiw 55.2:i 5 52.6•11 ·19.201
Other nou-c,u b .tdjtmrucn ts (20.754) (6-0.102) 5.621 Cash flow fro.m <>p~nn i<,ns 2s.s 1.; (12.514) (7.857)
End ouuc-n • Fu n d$ T oi ~I m:ir'..:PI i!:lh"U' (S millil')n::)
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S 11 l:Jl!' t l h i 11 1: ;lp Ual 111 1!' l v h l jl;l~V"I ,ltJ .... .11 , a l<:" t a.a11\l' l 1!' ll<.. l!'l!' d. .!.C l lllln Ul t:' (.. ;/ lU IWl.1!' 1 J' , -. .... 1::.J ..-.,; ((.; .t' I,
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v) Rcvcr.uc c :.ch:.d.n pr:,vinci.i lp ani fc r n:cdi: iJ !clpc:r~o (4) hc!udc~ :1: c rued cmpb)<:•: fn ru.rc b~:i~O:i
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Ccpyrtght: ~ :w: 1, u :n t ~ LUllltCd. l>BRS. Jn<C. M d u :n t ~ Reon,, Luw,cd (co:kett\.'dY~ UBRS). P.Jl n ghH rc~crv.:d. 'lb .: m li 11m a l11ru 11.p1,u wln,·h DH~ S 1~1111y,-. :i11d H'!p :11 L, ;n ~ ll~:<l'!1l 1s ui •l~111f"() h~ I )HRS fu me :.iuu ,:~ I )HRS i ,l'!h.-\·~ h • 1,.- ;,n ·1n :1(1"
a11,l 1<"1hahlt>1 I )KHS <lul'!•; lllll ;11~il 11 111.- 111li11111ah1111 111<'1l'l":1\'- 111 t '.l l'l tu:'lrhou w1!.l1 111:"1 1;1h11p, p11t<'.I'! •;•,. :111,! 11. 1lc1.--. 11u l au ,1 t·~nmol
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cJcv~uc.k- ou fa-.:t.':-au<.h :D,.:lQ.UShu:o.:t'':-. DBRS !.allugi.. t ey-;,t Is am.! .w.y o :J1i:1 iuCcmualiou )-'to.•viJ.:c.J by DBRS atC' pu.>•. idc-U. .. a.,; i 1:t <!IUJ. w1(buu1 tc)-'tc-~ u !a li-'IJ 01 w:urnuly uf au} U.ucJ. DBRS JJ.~1c by c.!is1.:h1im,; auy l t1,'le'>t'IJW.-,(iou 1-'t wcm<!l11ty. ,:-;,.ptc-9> (;l iwplied. as to th~ ac.o.:1uac;-_ tm:c-fu:.ess. co.mplere-uc-ss. mercb.ui.t,,bili::y. 6 tuess for iLllY p.vticul.v p·.1rpose 0 1 r.on-infri.n·g.emc-nt of any of i.-uo.:h ir.:fcrm.,rjou. In oo e-"~m ,;ball D DRS or its direct<>rs. offic¢n>. e.mplo:"ee~-. Ul&pcr.dc-JlT O.:<'ttttacior.6. 1.g~uts and re?re~eru.i;.ives (collectively. DDRS Repre, cntati'-"<~) be JL<,blc ( ]) for .Ul:" WaccMac.y. & lay, Jo~s of dau., interm? tjoa in scsvjc,e, c-rtoc or oausHor. ~ for auv dt11Ua~c, rc.,ul::mg th,:-:rd:Jooi. or (:.?) for an.v du-cet, uidirect, 1()('~.l~ tal , spccu1: . «!Ul).:n, a1or-y· ~ coru~croc-nttel damng,:s aru ang frc:u a.1.y \ls,:, of ran::gs and rnong rcpotu ot u i Hug from ar.y cnor (r.~gl~g,cm er o~hcn,·:i.c) ot u t l~ , ii 1:um :;lm u:l"', m n ,111iuy.'"'" :y w111,111 en , m1..-Kt.. lh .- i·,1n 1l.r11I 11( OR R :=. m :1uy DE RS R~,J1~ ;~111;, li \ ~ , i11 1'lmlll"1·liu 11 wi ll , u1
,~l:111"'<1 tc , u l,!;1-iui11y,, n il ll",·l iur., n i1111,ili11P. , :., ,..,1y .,"T11r-.. •:111.-11ri l"llmy,, 1·0 111, n n11ir ;11111y. p u l, li sl1io?, ,n d .. li 11 1"11 i11J: any s u.c:h
iu f,1111,a li tm R :,h ll!',"> :1111! u d 1rrt 11;, in icn1•; i:.-a-l h-. ORR::; ~1t"l, :u 1rl um:;I llll"l l'( 01J:;:l1u .-,l :;ul~ly :1s, •,l;1(.-11tl":f1I:; u f u; ,i11i1m :nu ! 11u l
,;tatemectc; ('f f.Kt .u ro ,:,red.it ,,·orth.i.u.<s.c; ('! tt:<orumeudarions to ptircha;e, ,;ell or hold au.y sec·.uicje$. A fe"J:Ot"t providing a DOR$ u.ring ii M i;h« a pro$pe«1.t:- nor a robi.rjru.cc for the infonu..llion as;eruDl~ . vc-rificd and pre~-~11ted to iJw~s•<>rs by the i isue1 olltd in ~g:am in con.uccticn w ith the s~lc of the .,cc:1m.ric,. DBRS. r cxr,N co:npcusetion for i!.; r:i.rin.g activi.ric, from i'"ncn. inn1rer_f.. guaran.tots M.d.lor 11od.::rv,-ritcn of d i:bt t-:<-tuiti c-~ foe a ; ;iipuni, ttt:Wg-s aud fro::n ~ub~.:cibcr~ !O its w~l:o., itc. D BRS is uor r.:opou;iibk for rhc .:ontc:it or opcrnhon of third part:,.· wcb;irc, accessed through bypcrnx:: ot o?hcr cc-n1p-.1tcr li."lk, and D BP.S !1:ht11I hn;;('. 1i() h11hlirr~· to IITlY po"'Ni.00 Of r:nmv for d~ IH('; of !(ll('h rhmt JVlfTY \'W•h:.1t ('_'i ·1 h1!1: puhlil'BU('Jfl may nm )':,"'; r.-pr,")dt:,"';r.d, r,"';!l'~a<1m1n ()rl Of ii1~cnh1tl'.l'.rl 11l nnv fo1m \'\•1!h,; 1lt thr prior wrmr.n <:()11sc-:n t.o f l )HHS Al .I . I )HK!-i KA'I IN( iS A.KE SI JKJE( ~I ' ' I '() DISCLt'lMER.S t'.l\-0 C'ERT/\IN LIM!Tt ,TIONS. PLE.\ SE READ THESEDCSCL,\IMEP.S Al\-0 LIMIT:\TIONS AT ht.p ,'h,.ww 1Un :onn11i:-i liu 1.l/oG•o:·J:11111.-i :\ODtTil1Nf\ f , lNFORM /\TTON RF.(i,\RDfNfi DRR ~ R :".TiN(r::-i, JN(;f ,t fDTN( i DF.FTNTTIOKS, POJ.ICTF.S ANO MF.THnnoJ,()fifF~~- ARF. /\Vl'.TT.l\ R l ,F.ON lll lp :,,.,ww 1Ui1•; C'A!~II
