Federation of Students' Council Agenda Regular Meeting

Federation of Students November 3, 2019

Federation of Students’ Council AgendaRegular Meeting

SLC MPR, University of WaterlooChair: Jason Small Secretary: Mansi Shah

AttendancePlease convey regrets to the Speaker of Students’ Council at [email protected].

Attendees:

• Small, Jason (Deputy Speaker)

• Velling, Seneca (VP Operations andFinance)

• Fitzpatrick, Amanda (VP StudentLife)

• Rodney, Victoria

• Jeon, Sung Eun (Stephanie)

• Parboodial, Shelbee (President,AHSUM)

• McComiskey, Kaitlynn Angela

• Nasir, Syeda Shehnoor

• O’Meally, Taijah

• Riaz, Shazza

• Tait, Abigail

• Dack, Caroline (President, ASU)

• Ren, Andy

• Lindstrom-Humphries, Delainey(President, EngSoc A)

• McGee, Ellen (President, EngSoc B)

• Brodsky, Guy

• Mathouda, Damanpreet

• Giesbrecht, Michelle (President, ESS)

• Mehta, Navya

• Chang, Diana

• Hunte, John

• Sharma, Kanan

• Xu, June

• Zumot, Samer (President, MathSoc)

• Parkyn, Colin

• Lau, Mackenzie

• Roxas, Nikka (Niks) Ysabella

• Soo, Sebastian

• El-Rayani, Mohamed (Designate,SciSoc)

• Chan, Samantha (President, RASC)

• Lawless, Sammy (Designate, SJUSU)

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[email protected]


Expected Absences:

• Beauchemin, Michael (President)

• Yang, Edward (Assistant Secretary)

• Gerrits, Matthew (VP Education)

• Town, Megan

• Plante, Connor (Chair of the Board)

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Order of Business

1 Preliminaries 51.1 Call to order (Attention) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.2 Territorial Acknowledgement (Information) . . . . . . . . . . . . . . . . . . 51.3 Ratification of Society & Pro Tem. Designates (Decision) . . . . . . . . . . 51.4 Ratification of By-Election Results (Decision) . . . . . . . . . . . . . . . . . 51.5 Approval of the Agenda (Decision) . . . . . . . . . . . . . . . . . . . . . . . 5

2 Approval of the Minutes (Decision) 6

3 Reports 63.1 Executive Reports (Information) . . . . . . . . . . . . . . . . . . . . . . . . 63.2 Board of Directors Report (Information) . . . . . . . . . . . . . . . . . . . 6

3.2.1 Presentation of Financial Statements and Appointment of Auditor(Information) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3.3 Representative Reports (Information) . . . . . . . . . . . . . . . . . . . . . 73.4 Officers of Council Reports (Information) . . . . . . . . . . . . . . . . . . . 73.5 Standing Committees or Commissioners Reports (Information) . . . . . . . 7

3.5.1 Report of the Internal Funding Committee (Decision) . . . . . . . . 73.5.2 Report of the Budget and Appropriations Committee (Decision) . . 8

4 Special Orders 84.1 Erection of a Temporary Structure on Bomber Patio (Decision) . . . . . . . 8

5 General Orders 85.1 Election to Vacant Committee Seats (Decision) . . . . . . . . . . . . . . . . 85.2 Reclassification of Orientation as an Administered Program (Decision) . . . 95.3 Approval of Capital Program (Decision) . . . . . . . . . . . . . . . . . . . . 95.4 Exam Scheduling and Relief Policy (Decision) . . . . . . . . . . . . . . . . 105.5 Fossil-Fuel Divestment of Faculty Endowment Funds (Decision) . . . . . . . 105.6 Extension for Housing Report (Decision) . . . . . . . . . . . . . . . . . . . 105.7 Opt-In Life Insurance Policy for Students (Discussion) . . . . . . . . . . . . 10

6 New Business 11

7 Announcements 117.1 Next Meeting (Information) . . . . . . . . . . . . . . . . . . . . . . . . . . 11

8 Adjournment (Decision) 11

Appendices 12Appendix A - By-Election Results . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Appendix B - Executive Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Appendix C - Chair of the Board of Directors Report . . . . . . . . . . . . . . . . 38

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Appendix D - Memorandum on the Financial Statements and the Appointment ofAuditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Appendix E - Representative Reports . . . . . . . . . . . . . . . . . . . . . . . . . 91Appendix F - Report of the Internal Funding Committee . . . . . . . . . . . . . . 93Appendix G - FY2020 Budget Report . . . . . . . . . . . . . . . . . . . . . . . . . 102

Budget Q&A Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192Appendix H - Memorandum on the Creation of a Capital Program . . . . . . . . 198Appendix I - Proposed Exam Scheduling and Relief Policy . . . . . . . . . . . . . 234Appendix J - StudentCare Life Insurance Offering . . . . . . . . . . . . . . . . . . 238

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1 PreliminariesAdding items to the agenda requires a two-thirds vote, although new items of business can still be raisedwithout needing that vote once the entire agenda is complete.

1.1 Call to order

Be it resolved that the Speaker calls the meeting to order at 12:30 PM.

1.2 Territorial Acknowledgement

Pursuant to Federation Policy 50, Indigenous Engagement and Inclusivity, the Federationof Students’ Council acknowledges:

The University of Waterloo is on the traditional territory of the Neutral,Anishnaabeg, and Haudenosaunee peoples. The University of Waterloo issituated on the Haldimand Tract, land promised to the Six Nations, whichincludes six miles on each side of the Grand River.

1.3 Ratification of Society & Pro Tem. DesignatesPursuant to Policy 55, Society Presidents and Designates on Council, the selection of a designate orappointment of a pro tempore councillor to fill a temporary vacancy by a constituency Society must beratified by the Students’ Council at the first regular meeting following such selection. Ratification may notbe unreasonably withheld by Council.

Be it resolved that Council ratifies Kanan Sharma as pro tem. councillor for theMathematics constituency as selected by the MathSoc Council.

1.4 Ratification of By-Election ResultsPursuant to Council Procedure 6, Election and Refernda Procedures, the results of all electoral events areto be ratified at the next available General Meeting of the Corporation or meeting of Students’ Council.

Be it resolved that Council ratifies the results, as certified by the Elections andReferenda Committee and documented in Appendix A, of the by-election held on October9-10, 2019.

1.5 Approval of the Agenda

Be it resolved that Council approve the Agenda, as presented.The Speaker assumes the motion to adopt the Agenda, as presented or amended

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2 Approval of the MinutesThe minutes of a meeting are the official record of what happened at that meeting, and contain theauthoritative versions of the actions taken at the meeting. If there are significant reservations about theminutes, the approval may be dispensed with, and the minutes will be returned at the subsequent meeting forapproval.

Speaker’s Note: The draft minutes of the October 6, 2019 meeting are to be sent separately to councillorsin advance of the meeting.

Be it resolved that Council approves the minutes of the October 6, 2019 meeting, aspresented.

3 ReportsMotions arising directly out of a report, including to adopt recommendations in the report, may be consideredimmediately after the report without having to wait until later in the meeting. No action is required to receivea report. If Council decides to adopt or accept a report, then it is endorsing the entire report and not justthe recommendations.

3.1 Executive ReportsEach executive will highlight key aspects of their written reports in an oral report that lasts no longer than2 minutes, to be followed immediately by a question period lasting no longer than 10 minutes per executive.The written reports can be found in Appendix B.

1. President (Michael Beauchemin)

2. Vice President of Operations & Finance (Seneca Velling)

3. Vice President of Education (Matthew Gerrits)

4. Vice President of Student Life (Amanda Fitzpatrick)

3.2 Board of Directors ReportThe Chair of the Board (Connor Plante) will highlight key aspects of their written report in an oral reportthat lasts no longer than 2 minutes, to be followed immediately by a question period lasting no longer than10 minutes. Please see Appendix C for the written report.

3.2.1 Presentation of Financial Statements and Appointment ofAuditor

For Information: Vice President Seneca Velling will present to Council the Audited FinancialStatements of the Corporation for the 2018-2019 fiscal year and inform council of the appointment of anew auditor. Please refer to Appendix D for the financial statements and supporting documentation.

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3.3 Representative ReportsTo be delivered orally or in writing by Councillors or the Constituency Caucus. Any questions relating tothe report or any other matter may be asked following the oral report. Submitted reports can be found inAppendix E.

1. Applied Health Sciences Caucus

2. Arts Caucus

3. Engineering Caucus

4. Environment Caucus

5. Mathematics Caucus

6. Science Caucus

7. Cambridge

8. Kitchener

9. Stratford

10. St. Jerome’s

11. Renison

3.4 Officers of Council ReportsTo be delivered orally. Any questions relating to the report or any other matter may be asked following theoral report.

1. Deputy Speaker (Jason Small)

2. Secretary (Mansi Shah)

3.5 Standing Committees or Commissioners ReportsTo be delivered orally or in writing by the Committee chair or Commissioner. Any questions relating to thereport or any other matter may be asked following the oral report.

3.5.1 Report of the Internal Funding Committee

Speaker’s Note: The following report was informally requested by Council at its August 17, 2019 meeting.

Be it resolved that Council accepts the report of the Internal Funding Committeeregarding a voluntary student contribution to the Enterprise, Opportunity, andInnovation Fund, as presented in Appendix F.

Submitted By: Seneca Velling.

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3.5.2 Report of the Budget and Appropriations Committee

Be it resolved that Council accepts the FY2020 Budget Report as presented by theBudget and Appropriations Committee and included in Appendix G, including the affixedFY2020 Budget.


4 Special OrdersA special order is an item of business that will take precedence over all other business at the designated timefor the special order. As it suspends the normal rule that each item must be disposed of before another can bebrought up, setting or removing a special order requires a two-thirds majority vote unless originally includedin the agenda.

4.1 Erection of a Temporary Structure on Bomber PatioThis item is scheduled to begin at 1:30PM.This item was originally submitted to the agenda of the October 22, 2019 Annual General Meeting, butas the meeting was adjourned prior to its consideration, it has automatically been referred to Councilfor a decision in accordance with the terms of the General Meeting agenda. The Board of Directors hasrecommended that the item be rejected.

Be it resolved that a temporary structure be erected in the Bomber Patio to providemore shade and a nice atmosphere.

Be it further resolved that the structure would be temporary, until first snow, withat least three flimsy walls.

Be it further resolved that it shall be reused annually, have a thatched roof, and thatit be built within one week of the AGM.

Submitted By: Jason Small, on behalf of Joshua Goldschmidt.

5 General OrdersA general order is an item of business that is ordered to be taken up at a meeting. Time limits to discussionsindicate the point at which the Speaker will end the discussion unless Council directs otherwise.

5.1 Election to Vacant Committee SeatsSpeaker’s Note: Given the arrival of new councillors, the intention is to fill all remaining vacant committeeseats. Per Procedure 10, at-large seats may be filled by councillors if there are no interested at-largemembers. Under no circumstances shall any voting member of ERC be a candidate for an active Electionor By-election, join a Referendum committee, endorse, or campaign on behalf of any candidate, team orreferendum position.

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Be it resolved that Council elects Binoy Pattharwala and to the vacant at-largeseats on the Policies and Procedures Committee (PPC).

Be it further resolved that Council elects to the vacant at-large seat on theElections and Referenda Committee (ERC).

Be it further resolved that Council elects to the vacant at-large seat on theCampus Life Advisory Committee (CLAC).

Be it further resolved that Council elects to the vacant councillor seat on theEducation Advisory Council (EAC).

Be it further resolved that Council elects and to the vacant at-largeseats on the Ad Hoc Committee for General Meeting Engagement.

Submitted By: Michael Beauchemin and Jason Small.

5.2 Reclassification of Orientation as an AdministeredProgram

Speaker’s Note: This course of action will allow the Board of Directors to formally include Orientationas an Administered Fund for the purposes of planning, budgets, and distinct accounting.

Be it resolved that Council amend the schedule of programming, reflective of theWinter 2018 General Meeting decision regarding separation of Orientation programmingfrom the General Operating budget, to treat First-Year Orientation as an administeredfund.

Submitted By: Seneca Velling and Amanda Fitzpatrick.

5.3 Approval of Capital Program

Be it resolved that Council accepts the memorandum of the Vice President,Operations Finance, included in Appendix H, for the creation of a Capital Programfor the Waterloo Undergraduate Student Association;

Be it further resolved that the Vice President, Operations and Finance, will reportback to Council when the the determination of the compulsory or optional nature of thisfee, in whole or in part, is negotiated with the University; and

Be it further resolved that Council directs the Office of the Vice President,Operations and Finance, to begin the development of a Capital Improvement Plan forthe organization.


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5.4 Exam Scheduling and Relief PolicySpeaker’s Note: A two-thirds majority vote is required for this motion. This proposed policy has beenreviewed by the Education Advisory Council.

Be it resolved that Council adopts the proposed advocacy policy on Exam Schedulingand Relief attached in Appendix I, subject to clerical and formatting revisions to be madeby the Policies and Procedures Committee.

Submitted By: Megan Town.

5.5 Fossil-Fuel Divestment of Faculty Endowment FundsSpeaker’s Note: Links embedded below were provided by the mover as supporting material and do notformally constitute part of the motion.

Whereas it has been the opinion (based on reports and major actions) of companiesand sovereign wealth funds such as MSCI and the Norwegian Sovereign Wealth Fundthat divestment of fossil fuels is financially prudent;

Whereas the University’s Working Group on Responsible Investment has recommendedan ESG-focused investment policy (Environment, Social & Governance) for both ethicaland financial reasons; and

Whereas the student club Fossil Free UW and large involvement in the recent climatestrike has shown students want the university to act on climate change and implementfossil fuel divestment.

Be it resolved that the Policies and Procedures Committee be tasked with draftingan advocacy policy supporting the divestment of faculty endowment funds from ’fossilfuel’ assets.

Submitted By: Guy Brodsky.

5.6 Extension for Housing ReportSpeaker’s Note: A two-thirds majority vote is required for this motion.

Be it resolved that Council amend its previous decision to extend the timeline forreception of a report on housing to the January regular meeting.

Submitted By: Matthew Gerrits.

5.7 Opt-In Life Insurance Policy for Students

For Discussion: See Appendix J for information on this StudentCare product offering.


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https://www.theguardian.com/environment/2015/apr/10/fossil-fuel-free-funds-out-performed-conventional-ones-analysis-shows

https://www.theguardian.com/world/2019/mar/08/norways-1tn-wealth-fund-to-divest-from-oil-and-gas-exploration

https://www.cigionline.org/sites/default/files/documents/Paper%20no.134.pdf


6 New BusinessAny Councillor may raise any item of concern during new business. Generally, long discussions withouta specific motion before Council should be avoided, and are technically against the rules of procedure. If aCouncillor has any questions about the procedure, form, or content, they should ask the Speaker.

7 Announcements

7.1 Next Meeting

The next regular meeting of Council is scheduled for December 1st, starting at 12:30PM,in the SLC MPR.

8 AdjournmentBe it resolved that the Chair adjourns the meeting no later than 11:59PM.

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Appendices

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Engineering Council

Ren, Andy: 146 (45.1%)McGuire, Kevin: 117 (36.1%)

Chelva, Jesica was eliminated in the first round of STV.Cofini, Kobe was eliminated in the second round of STV.Nguyen, Grace was eliminated in the third round of STV.McGuire, Kevin was eliminated the fourth round of STV.

Full details of this race:

Voter Turnout: 3.9201451905626135%

Droop Quota: 160Eligible voters: 8265 Votes cast: 324 (2.7050663449939685% of students voted in this ballot) (NOTE: this 324 includes the 5 declines) Declines: 5

Environment Council

Brodsky, Guy: 46 (42.2%)Mathouda, Damanpreet: 46 (42.2%)Naik, Arti: 17 (15.6%)

Quota exceeded by candidates. No elimination rounds.


Voter Turnout: 4.708423326133909%

Droop Quota: 37Eligible voters: 2315 Votes cast: 109 (4.708423326133909% of students voted in this ballot) Declines: 0


Appendix A - By-Election Results

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AHS Council

Jeon, Stephanie: 86 (66.2%)Noweir, Mahmoud: 16 (12.3%)Masroor, Shafaq: 5 (3.8%)Smith, Ethan: 23 (17.7%)


Voter Turnout: 5.0682261208577%

Droop Quota: 66Eligible voters: 2565 Votes cast: 130 (5.0682261208577% of students voted in this ballot) Declines: 0

ERC meeting: Friday, October 11, 2019

8am-8:18am

Discussed the droop quota, the STV ranking system, and discussion around paper ballots – no paper ballots this by-election

Motion: ERC certifies the by-election results

Moved by Jason Small, seconded by Victoria Rodney

Adopted/Certified at 8:17am

Adjournment: 8:18am


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Students' Council By-Election Fall 2019 - TurnoutMax Eligible Voters: 8265

Number of Voters voting in at least one ballot: 563

Turnout: 6.811857229280097%

Number of voters on vote.feds.ca: 563

Number of voters on portal: 0

Number of voters who cast a ballot using vote.wusa.ca and portal: 0

Engineering Council

Number of Voters (includes declines): 324

Declines: 5

Eligible Voters: 8265

Turnout: 3.9201451905626135%

Vote.wusa.ca Voters: 324

Portal Voters: 0

Environment Council


Declines: 0


Turnout: 4.708423326133909%



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Portal Voters: 0

AHS Council


Declines: 0


Turnout: 5.0682261208577%


Portal Voters: 0


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Waterloo Undergraduate Student Association (WUSA):

By-Elections Fall 2019 Summary Applied Health Sciences, Engineering & Environment

Completed by:

Angela Balasubramaniam Electoral & Referenda Officer (ERO)

Summary As the Electoral and Referenda Officer (ERO) for the Fall 2019 By-Elections, I was responsible for being an authority on interpretations of the Federation of Students Elections and Referenda Procedures. As ERO, I was responsible for ensuring candidates are aware of the procedure guideless and are knowledgeable of the penalties. My duties included assisting with communicating with candidates to enforce policies and enforce campaign spending budgets. All candidates running for Applied Health Sciences, Engineering & Environment acted according to the procedures, by-laws, polices pertaining to the Elections. During the Electoral Nomination, Interim, Campaign and Voting Periods, communication with candidates was directly completed with email. Findings 1. In the past, the “All Candidates Meeting” has regularly been held as an in person mandatory meeting.

Instead, this year it was changed to a detailed email pertaining to a summarized outline of important guidelines and forms for the elections. I found this method to be advantageous as candidates were quick to respond and follow instructions accordingly. It also allowed all critical information to be displaced into a single email that can be referenced.

2. I noticed many candidates were thorough and responsive when communicating through email. Many preferred this style instead as this saved time on both sides. However, a few candidates took many days to respond to simple requests such as returning forms. It is important inform candidates of their active response during the campaign period as this allows the ERO to dynamically ensure a fair and equitable elections.

3. In the past, voting polls were set up in the Student Life Centre which allowed for students to stop by and vote in person. This year, polling stations were located in a secluded room away from the common area. I noticed that not many students were aware of this option to vote as it was not visible to those who are passing through. Although, the in-person polls only brought in a few ballots, it brought attention and publicity to the elections; which I believe is critical to improving the voter turnout.

4. Lastly, I believe more marketing needs to be done prior to the campaign period to give UW students the time to become mindful, educated and thus vote. Since the by-elections are usually completed within a short period of time, such marketing is important for improving student voter turnout.


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President

Michael Beauchemin

03 November 2019

Formerly known as Federation of Students, University of Waterloo

Waterloo Undergraduate Student Association


Appendix B - Executive Reports

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1.0 Monthly Summary

It’s been a long month and as crazy as it seems, things have only sped up into October and soon to be

November. My update is a little bit thicker as a result, so I will try to be brief in this portion. The by-election

for Council was a success, and we should be seeing a results report from the ERO at this meeting –

welcome to all new Councillors! I took the Council recommendation on smoke free campuses back to the

Wellness Collaborative Advisory Committee, which is forming a working group to investigate tobacco on

campus – I have thus far been asked to be on that committee, but if anyone has a burning passion, let me

know and I’ll consider subbing you in. The General Meeting on Oct 23 was a resounding success, and we

had some great discussions on some issues important to students. All of you should have been there so I

won’t go over what happened again.

Finally, not fitting in well below but worth its own paragraph here, there will be a Student Tenant Rights

and Obligations Information Night event (working title) that we are holding in collaboration with Laurier

and Conestoga in Engineering 7 on November 12. Follow our social media for more details and let your

constituents know it’s coming up. We will be serving some refreshments and will have City Councillors,

MPP Fife, hopefully some mayors, as well as legal representatives from the Legal Protection Service,

StudentCare, and other community partners who are knowledgeable about housing rights in Waterloo.

1.1 Senate Senate had the first reading of a Bylaw 3 change that would give WUSA’s Elections & Referenda Procedure

the authority over expenditure limits (used to be limits set by Bylaw 3) for Senate Undergraduate races.

The Senate took it as a first reading (out of two), in their normal bylaw review process. Nobody asked any

questions so it seems they are all ok with this. The Senate additionally saw and recommended for approval

to the Board of Directors the updated Strategic Plan (some of the issues raised at the Board by the

undergrads were not appropriately addressed, so I am working with the Strat Plan coordinator to make

sure that the understanding of the plan accounts for this), modified the Honours Materials and

Nanosciences Program (this is the last significant change for 5 years, they said), and the 2020-2021

Calendar was approved. Jason can provide additional information, since I am not present at this meeting

of Council.

1.2 Board of Governors Since the last Council meeting, the Board of Governors has met a couple of times, which is a little unusual.

There was an “Extraordinary Meeting” of the Board for reviewing the Strategic Plan Draft, and much

commentary was given by Board members. The Undergraduate Governors focused on some key points,

notably mental health, student government, student experience, enterprise and innovation

opportunities, and undergraduate student researchers not being adequately addressed in the Strat Plan.

Since then, the Senate has met and reviewed the Strat Plan, which included more explicit points on mental

health, student government, and student experience, but missed out on a bit of the other stuff, so I’m still

advocating for what I can get for undergrads in the Plan.


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There is another meeting of the BoG on Tuesday 29 October, 2019, and I will update on that at the next

meeting of Council. Some items that are coming up: Strat Plan for approval, the Campaign (the University

is launching a 10-year campaign to raise a billion dollars), and some updates from committees on what

they’ve been doing since the summer break began. Notably, from Buildings and Properties: Aquatic

Animal Lab Upgrade approved, Science Centre for Innovation and Physics building renewal/extension to

PHYS was approved to continue to develop construction documentation to make the project “shovel-

ready” in time for a new government, which we hope would give UW money for the project. Additionally,

the University is aiming to become a signatory to the UN Principles of Responsible Investment, and align

its own environmental, social, and governance factors with a higher standard.

1.3 Societies I have unfortunately not been able to do a lot with Societies recently – I’ve been swamped on the LRP side

and with other engagements. The Societies MoU update is given in 2.9, below. I am hoping to have a

discussion at COPs about holding another All-Societies Assembly in the Winter term, and perhaps making

it an annual affair – I prefer Winter because I find that people are still settling in in the Fall term, especially

the WUSA exec, who have to deal with a vastly increased workload.

1.4 Committee on Student Mental Health (CoSMH) (Feedback Form) The Committee on Student Mental Health is continuing to work on recommendations and is right now

considering what should be considered next. John Hirdes, chair of CoSMH, and some other members of

the executive sub-committee would like to come to Council at our December meeting to present on the

Committee’s work and receive feedback from Councillors (representing students) on the CoSMH’s

progress and actions to date. Additionally, there is a Campus-Wide Forum on Mental Health that is

planned for November 6th from 1:30 – 3:30 PM at Fed Hall. Feridun will be there, as will I, and we will be

engaging with University Community members on mental health on campus – this event will likely also

include an update from the CoSMH.

The following came to my attention so I thought I would share with you all:

Skills for Safer Living (SfSL) – Suicide Ideation Group

Counselling Services and CMHA Waterloo Wellington will be running a SfSL Suicide Ideation Group

in the Winter 2020 semester. This is a psychosocial/psychoeducational intervention for people

with persistent suicide ideation. If you are connected with students that meet the criteria

(thoughts of suicide, no previous suicide attempts, enrolled in university studies and has housing)

please talk to them about self-referral at 519-888-4567 ext. 31976.

1.5 Volunteer Discounts As volunteers for WUSA, Councilors, Directors, and Society Executives are eligible for discounts at our

Commercial Operations. Go to request.feds.ca, click on IT Requests, and then Customer Discount. Once

you fill in your information, the discount will go to me for approval and you will get 10% off at International

News.


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2.0 Initiatives and Objectives

2.1 Elections Review The Elections Review is entering its second stage soon. I had an opportunity to work through the changes

with some of my staff to identify what things will change for them, and we continue to find minor areas

that we want to monitor during the upcoming General Election. Once the General Election concludes, we

will likely come back to Council with some changes for the Elections & Referenda Procedure.

2.2 Embed and Enable Better Mental Health and Peer Supports This project has stalled a little bit, given other priorities and the lack of support from Campus Wellness.

Hopefully I will be able to get to some of this stuff over the winter break.

2.3 Governance Process and Organizational Impact I have reviewed a draft of the Procedure 13 changes requested by Council with the Policies and Procedures

Committee, who are in agreement with my chosen direction. I need to flesh out the procedure a little bit

more before I can bring it back to PPC for recommendation to Council. Further to that, I am trying to

consider how to build better controls on org impact into the Long Range Plan and am planning (once the

Policies are in the new template), to start pulling together important policies, procedures, and other items

by staff area to make sure that staff have an easy packet of information at hand to ensure compliance

with our governing documents.

2.4 Long Range Plan At the most recent meeting, the Long Range Plan Committee considered questions for a survey that we

hope to release by Mid-November. This is an update to our LRP process timelines but we are still hopeful

that we can get enough time with the survey up to get some good responses. I will additionally be reaching

out to schedule meetings with stakeholder groups over the next 3 weeks to try and get as much

consultation as possible – these sessions will focus on longer form, more thought-provoking questions for

people to really consider what they want from WUSA. Right now, we are looking at the language style

that we want the plan to have so that we can tailor it properly and appropriately to the student body, and

so we can make sure that we’re not leaving behind the staff who will have to work within this plan. If you

have more specific questions about the Long Range Plan process or what’s going on, feel free to reach out

to me offline.

2.5 Marketing Rebrand We have hit the point where we are going to start doing a review of the rebrand and its impact. The Long

Range Plan Committee and the Director, Marketing are both requesting this and I will be putting some

time toward it in the coming months.

2.6 Organizational Prioritization We are taking a second look at the organizational prioritization that we did because there has been some

creep and as things pop up it’s difficult to keep track of what is still a priority. We are hoping to refocus

and flesh it out a bit more with some non-operational items so that, ideally, all staff will know what they


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are working on or should be to advance the organization’s goals. Committees and their work haven’t been

considered yet but they have a strong impact, so we will be discussing them as well.

2.7 Policy and Procedures Updates Please see the Policies and Procedures Committee update below. Work has stalled a little bit because of

reading week and the General Meeting, but I have started to work on a Board procedure for the Executive

Committee in my spare time. This procedure would, among other things, actually delineate the powers of

EC based on what is listed in various different areas, to avoid confusion if the question, “Can EC do this?”

ever arises (again).

2.8 Satellite Campus Engagement The Roma XL Celebration is celebrating the 40th anniversary of the Rome Campus. It is occurring from 30

October to 2 November. We are hoping to be able to send someone, but given the short notice, it’s

possible that the timelines just won’t work out. I will be talking to the necessary people to make sure that

opportunities like this don’t pass us by in the future, and I hope to convince somebody that in the event

nobody from the University’s senior admin can attend, they can count on WUSA to represent the

University and be there for undergraduates so that they don’t feel forgotten.

2.9 Societies Memorandum of Understanding I have received and reviewed the lawyer’s response to the MoU and Seneca has a meeting planned with

the lawyer on Oct. 29 (I cannot attend because of a conflict with the Board of Governors), and we will

reconnect and follow up as soon as we can to discuss the conversation and potential changes (of form)

that the MoU might take before approval. The intention is to increase the clarity, improve the approvals

process, and increase accountability on both sides, so I think that the lawyer’s recommendations will be

well-received. It does, however, absolutely destroy any hope that I had in my initial timeline, and I’m going

to rescind my estimates and say that it’s going to take a while, still.

2.10 University Policy Review The Executives had the opportunity to provide feedback to the Policy 33 drafting committee about the

new and ‘improved’ Policy 33.

3.0 Committee Updates

3.1 Ad-Hoc Committee on General Meeting Engagement (Joint) Work is ongoing for the GME Committee and we are not near a point where we can begin implementing

changes. We will be trialing town halls, with Megan Town’s assistance, in the Winter term, and will

hopefully have some bylaw changes prepared for the Winter General Meeting.

3.2 Ad-Hoc Committee on Organizational Transition (Board) The committee has not met since the last Council meeting but a meeting is being planned for the next few

weeks to follow up and set targets and goals. The primary aim is still to complete and wrap up work from

the last governing year, which will include interviewing directors along the same lines as previously.


22

3.3 Executive Structure Review Committee (Board) I’m not chairing this committee! Thank you Megan for your noble sacrifice. Work for this committee is

ongoing and I have personally interviewed some past execs (2017, 2016, and 2015) for their perspectives

and thoughts. Moving forward, I will be helping to develop some potential options for the committee to

consider and examining the effects of the organizational restructures from the past 5 years (including the

most recent one, approved in May).

3.4 Committee of Presidents (COPs) The Committee of Presidents had a non-quorate meeting on Friday 11 October, 2019, where a review of

Policy 33 was scheduled to take place, and plans to have a quorate meeting on 28 October. Minutes from

the September meeting have not yet been approved.

3.5 Policies and Procedures Committee The Policies and Procedures Committee has met once since the last meeting of Council. At that meeting,

we re-prioritized policy and procedure for review, further divided some work, and decided on new Policies

to aim to create. Among these policies are such as Universal Code of Conduct and an Enterprise Risk policy

(these are working names and may not be entirely reflective of the final product. The policies we are

reviewing and reformatting in the new Policy template include Policy 5, 9, 17, 39, and 41.

3.6 Waterfowl Mascot Committee I have appointed a committee member to be the vice-chair of the committee so that we can continue to

organize meetings, because I find that it is not a priority for me and it therefore does not get met on a

regular frequency. Jennifer Guillen is my appointee, and we hope to take some artwork items through this

committee for approvals and decisions.

3.7 Honorary Lifetime Membership Committee This Committee has not yet met


23

Vice President,

Operations & Finance

Seneca J. Velling

03 November 2019

operated by the Federation of Students, University of Waterloo



24

1.0 Monthly Summary

1.1 Human Resources The implementation of the organizational restructure has completed. Grading is underway with HR.

Potential adjustments of the fee to compensation for regrading in excess of those heretofore approved

may be provided by the January meeting.

1.2 Student Choice Initiative Changes to fee names and descriptions received prior to 22nd of October have been implemented. Any

outstanding ones may be implemented, but this is to be determined at the discretion of UW Finance at

this point in time.

The General Manager and I had a very successful meeting with Finance and are planning improvements

to data sharing, analysis, and membership management.

1.3 Budget & Appropriations Committee The Committee prepared the Budget and FY2020 Budget Report, which should be included with this

agenda.

1.4 Internal Funding Committee The Committee has met to review two additional funding requests. The IFC submitted a committee

report for this Council meeting regarding a voluntary student contribution to the EOI Endowment Fund

(see Report of the Internal Funding Committee for further details).

1.5 Student Life Centre Management Advisory Committee (SLCMAC) No update.

1.6 Business Operations & Fair Competition Following the previous meeting, my office has been working on an amended draft of the previous

agreement that UW Food Services and Print & Retails Solutions originally proposed. If Councillors are

interested in a copy of this or wish to review and provide feedback – or if Societies’ VPs Finance or VPs

Operations are interested – please reach out to me via email.

1.8 Two-Ply Toilet Paper WUSA and Plant Operations, Environmental Services division, have begun the request for proposal for

the serviding of soap, paper products (including two-ply toilet paper), and other washroom consumables

for main campus and satellite campuses.


25

1.9 SLC/PAC Expansion Construction Construction is on track for the opening of the food court in the Fall term, but the project completion

should not be expected before Spring (season) next year.

2.0 Contractual Affairs

2.1 Student Assistance Program through Health Plan Formal bids have been received from all interested vendors. Three bids were received, one was

eliminated for being out of scope (although relevant to peer to peer support services and has been

passed to the VP Student Life) and the other two are proceeding to the Health & Dental Plan Oversight

Committee for selection following consultation with Campus Wellness partners.

A formal vote will be held by the Committee when advisement has concluded. This will result in a choice

of vendor and by virtue of that the expansion of the Health Plan. Initial planning may see a Student

Assistance Plan addition to the Health Plan started in Winter 2020 Term with expansion of service over

the coming year in collaboration with Campus Wellness (Counselling Services specifically). If the services

can be integrated without adjustment of fees, the Committee will do so, otherwise the Board may be

requested to adjust fees based on expected premiums for the program, however the estimates cost of a

program is <$17 annually, and with some bids is <$5.00 annually inclusive of HST. The Committee will

only recommend to the Board a product that ensures the selection achieves the greatest value-for-

money while being conscientious of cost.

2.2 Negotiation of U-Pass Renewal The VP Education and I have met with GRT and other Regional stakeholders for the renegotiation of U-

Pass beyond FY 2020. The current agreement is set to expire next year. The group has tentatively agreed

to sign a letter of intent for Mid-February 2020, with a formal renewal agreement being signed prior to

fees assessment for Fall 2020 start of the next academic year.

3.0 Initiatives, Objectives, and Stakeholder Engagements

3.1 WatCard as a Service A green paper on watcard service models has been passed out to the Student Services Advisory

Committee’s membership. In that report, the WUSA Executive Committee requested costing estimates

from UW Finance and what prorated levels may look like between Graduates and Undergraduates.

Initial perception has been positive.

3.2 Bomber-space Planning Since the last Council meeting’s adoption of a direction for the Bomber space, planning has begun to lay

the ground work for consultations, focus groups, market feedback sessions, and more. I am personally

working to organize an interior design and architectural competition for students and student teams to

pitch designs for the space. Designs will be filtered and voted for, and the top design selected for formal

project scoping, construction estimates, and drawings to be developed. Students will be paid for


26

submissions; a proposal will be received by the Internal Funding Committee for $15-20k in funds to

support student submission of works to appropriate compensate those interested.

3.4 Meeting with GSA Met with GSA Executive Manager to discuss planned centralization of resources to minimize overhead

costs between the GSA and WUSA, increasing efficiencies for students. A second meeting is planned to

scope out a partnership and support for the GSA and their operations.


27

Matthew Gerrits

Vice President Education

Report

November 2019


28

0.0 Announcements

OUSA General Assembly: I am currently absent due to the OUSA AGM and General

Assembly. Please provide any questions to [email protected]

OUSA Letter Writing Campaign: Received just north of 1000 responses, which have been

forwarded to over 90 MPPs across the province.

Results of Federal Letter to Political Parties: Fiscal responses to our recommendations

included approximately $5.7 billion in the NDP platform and $2.7 billion in the Liberal

platform. The Conservative platform had some post-secondary education funding in forms not

asked in our letter, as did the Green Party, which promoted free tuition. Both the Green Party

and NDP committed to asks relating to UNDRIP and TRC with regard to post-secondary

education.

1.0 University & Association Committees

1.1 Feds Committees:

Education Advisory Council

Responsibilities: To advise the Vice President Education on academic issues facing Waterloo students.

Synopsis: Has had a meeting since last report which was highly productive, and we are currently in the

process of e-voting on four policies to either be given to Council or returned to PPC. Beginning to

address policy backlog, and have a largely full docket in the coming month.

Co-op Students Council

Responsibilities: To advise the Vice President Education on co-op related issues, and to serve as an

opportunity to interface with the Co-op Experience Staff.

Synopsis: I was unable to attend the most recent meeting.

1.2 University Committees:

Co-operative Education Council

Responsibilities: A forum to review and to advise Co-op at UW.

Synopsis: The most recent meeting was cancelled.

Senate Undergraduate Council


29

Responsibilities: To consider questions involving academic quality and undergraduate studies and

provide recommendations to go forward to Senate

Synopsis: Had a discussion on the future of the committee and streamlining of curricular changes to

better allow that committee to discuss strategic items.

CEPT2/CTAPT

Responsibilities: Investigating how course evaluations are done and how to improve them, and how to

develop complementary methods.

Synopsis: Both of these committees have begun meeting for the fall, CEPT2 has not had a meeting

since my last report.

Verification of Illness Forms Working Group

Responsibilities: Explore options for reform of the Verification of Illness Form and consideration

process.

Synopsis: Is meeting on Monday.

Open Scholarship Committee

Responsibilities: Promote open learning on campus.

Synopsis: I was unable to attend the most recent meeting of this committee.

Fall Reading Week Steering Committee

Responsibilities: Discuss the implications and things that have to happen as a result of the shift in

schedules to allow for a Fall Reading Week,

Synopsis: Has not had a meeting since last report. Anticipating one being scheduled shortly.

Student Performance Evaluation Working Group

Responsibilities: Reform the SPE process on campus to promote unity and improve quality of student

experience and data.

Synopsis: Had an initial meeting which was productive, and reviewed work plan for future meetings.

2.0 External Committees

2.1 Municipal/Regional-level

Town & Gown Steering Committee, City of Waterloo

Responsibilities: I was not in attendance for the most recent meeting. Please direct questions

to the Municipal Affairs Commissioner.

Unsanctioned Public Gatherings Task Force, City of Waterloo

Responsibilities: Represent UW students in ongoing discussion about large unsanctioned gatherings

happening in the City of Waterloo

Synopsis: Has not met since last meeting.


30

2.2 Provincial-level Ontario Undergraduate Student Alliance (OUSA)

Responsibilities: Represent UW students to the provincial government through an alliance of like-

minded undergraduate student associations. For more information on OUSA visit: www.ousa.ca.

Synopsis: Has set the AGM agenda, including bylaw changes, and has had discussions on the RFP for

audit, and reviewed the performance of the letter-writing campaign.

2.3 Federal-level

UCRU

Responsibilities: To advocate on behalf of students to the Federal Government. UCRU is made up of

student leaders from U15 schools across Canada.

Synopsis: Had a meeting where we affirmed our Terms of Reference for Committees. I am sitting on

the governance committee and President Beauchemin is sitting on the policy committee.

3.0 Stakeholder Meetings

3.1 University-level:

Cathy Newell-Kelly, University Registrar: Had a recent meeting to discuss the progression of various

issues, including promotion of The Centre, the name-change project, international tuition, including

ELAS and BASE students, data-sharing, and scoping out potential pitches for academic operations to

be posed at UOPS

3.2 Municipal/Regional-level: Grand River Transit Team: Along with Vice President Velling, attended a stakeholder meeting with

GRT to discuss current service levels and additional ideas for service improvements, the current status

of their projects, and the status of the UPass Agreement.

3.3 Provincial-level:

The Honourable Rod Phillips, Minister of Finance & The Honourable Steve Clark, Minister of

Municipal Affairs and Housing: Attended a Kitchener Chamber of Commerce luncheon due to the

generosity of the university. While I had no direct interaction with either minister, I had the opportunity

to listen to them discuss current issues affecting Waterloo Region.

3.4 Federal-level:

None of Note.


31

3.5 Other:

None of Note.

4.0 Other Activities

4.1 Correspondence:

Minister Romano and Associate Minister Tibollo: Currently have sent off one of four letters I am

hoping to send to establish an independent government relations agenda for the year. This letter

addressed asking the Ministries of Colleges and Universities and the Associate Ministry of Mental

Health to extend the Mental Health Services Grant.

4.2 Research:

Research Proposal for Housing Report

Key Methods and Findings: Have delegated creation of the report to the Municipal Affairs

commissioner and the Research and Policy Officer. The timeline by necessity will have to be extended.

4.3 Writing:

None of Note.

4.4 Engagement:

None of Note.

4.4 Media:

None of Note.

4.5 Other:

OUSA Work

Notes: Trained OUSA delegates for upcoming general assembly. Conducted edits on my sections of the

OUSA paper to reflect most of the comments received on them from varying delegations.


32

5.0 Upcoming Activities

5.1 University and Association Committees

5.1.1: The terms of reference for the subcommittee have been approved, and Leads posting for

students at large are being developed. Two of the three seats open to EAC members have been

filled.

5.2 External Committees

5.2.1: Hoping to play a leading role in developing other OUSA bylaw revisions & in developing

the governance structrure of UCRU.

5.3 Stakeholder Meetings

5.3.1: I am preparing to bring a few topics to UOPS over the next couple of months, with some of

the topics having been previously discussed by EAC.

5.4 Other Activities

5.4.1: I’ve developed a more granular report structure for EAC so that they can get a little more in-

depth look into current issues in government relations, my activities, commissioner activities,

things on the horizon, opportunities for them and their constituents to get involved.


33

,

V P E D U P D A T E November2019

A C H I E V E M E N T S

Over 1000 lettters were received through the OUSA OSAP campaign.Over 53% of MPs elected in the federal election support increases to student grantsThe university is looking into a niche issue with Ecuadorian and Panamanianscholarships

N O T A B L E M E E T I N G SMet with GRT to talk about improving transit route serviceWrote a letter to the Ontario government to ask for anextension to a mental health grantA meeting looking to improve student performance evals

O N T H E H O R I Z O NAsking the government to better support internationalstudent health and employment law for co-op studentsLobbying at at the provincial government buildings forOSAP, preventing sexual violence, mental health, andbetter co-op jobsDoing research into housing issues in Waterloo Region

H O W Y O U C A N H E L P W I T H A D V O C A C Y

Consider running for the Student Councilor or Executive positions open atwusa.ca/elections. Feel free to email me with any questions [email protected] writing or emailing your Members of Parliament, just elected, and letthem know that you are a university student and hope that they will makedecisions that help you out. You can search by postal code athttps://www.ourcommons.ca/Members/en/searchFollow @OUSA and @UCRU_Can on twitter!

O T H E R S T U F F Y O U S H O U L D K N O W We'll be sharing congratulations with electedparty leaders and local MPsMy partner just ran her first half-marathon in theToronto Waterfront Marathon, and I'm incrediblyproud of her.


34

Vice President Student Life

Amanda Fitzpatrick

November 2019

Formerly known as Federation of Students, University of Waterloo



35

1.0 General Update

1.1 Services

1.2 Clubs

1.3 Orientation

1.4 Miscellaneous

2.0 Committee updates

2.1 Internal Administration Committee

2.2 Campus Life Advisory Committee


36

1.0 General Updates

1.1 Services

I’m close to finishing working on a Trans Bursary program that I hope to start in winter term.

Trans students will be able to apply to receive up to $200 worth of funding to go towards

changing government documentation (Driver’s license, passport, etc) to include a new name

and/or gender marker.

I will be working with Glow, RAISE, and the Equity Commissioner to create a report on the

experiences of trans and racialized student’s experiences in Health Services.

Sustainable Campus Initiative got approval to put a shipping container in the CIF Contractor lot

for the SCI clothing to be stored.

1.2 Clubs

We are currently finalizing the rules for clubs in terms of fees and membership.

1.3 Orientation

No big updates

1.4 Miscellaneous

Volunteer appreciation is coming up on November 18th.

16 Days of Activism Against Gender Based Violence begins on November 25th and runs through

to December 10th.

I’m currently talking to a couple schools about bringing free menstrual products to campus.

Our Wellness Days self-care kits on the 29th were a great success!

2.0 Committee Updates

2.1 Internal Administration Committee No updates

2.2 Campus Life Advisory Committee No updates


37

October 28, 2019


Appendix C - Chair of the Board of Directors Report

38

1.0 Meetings of the Board Since the last meeting of Council, the Board of Directors has met on Thursday October 10th for our Regular October Meeting.

2.0 Annual General Meeting I highly successful Annual General Meeting of the Corporation occurred on October 22nd. Thank you to all that attended and to those who assisted in executing the event! I am pleased to report that a number of previously Council and Board approved Bylaw amendments received ratification from our membership, and are now in force.

Additionally, the general meeting appointed PricewaterhouseCoopers (PWC) as the auditors for the Corporation for fiscal year 2020 through 2022. This appointment is the culmination of an RFP process that was initiated earlier in the year. On behalf of the Board, I would like to thank the Auditor RFP Selection Committee for their hard work on this file and recommendation of auditor to the general meeting.

3.0 Procedure 18 The Board has rescinded Procedure 18, Ethical Purchasing Contracts, as Board Procedure was determined to not be an appropriate location to house the content of it. As a corollary to the Procedure rescission, the Board has recommended that Council develop a more comprehensive Corporate Sponsorship and Purchasing Policy.

4.0 Budget Approval A Special Board Meeting has been called for the morning of Monday November 4th for consideration of final passage of the Corporation’s fiscal year 2020 budget, if Council so adopts it.

5.0 Other I will be joining the WUSA delegation at Brock University for the 2019 Fall OUSA GA from November 1-‐3rd, and therefore will be unable to be in attendance for the Council meeting.


39

MEMORANDUM

TO: MICHAEL BEAUCHEMIN, PRESIDENT CONNOR PLANTE, CHAIR OF THE BOARD

FROM: SENECA VELLING, VICE PRESIDENT, OPERATIONS & FINANCE

SUBJECT: APPOINTMENT OF THE AUDITORS

DATE: 22 OCTOBER 2019

CC: BENJAMIN EASTON, SECRETARY OF THE CORPORATION SUZANNE BURDETT, GENERAL MANAGER STUDENTS’ COUNCIL BOARD OF DIRECTORS

In accordance with the Ontario Corporations Act, R.S.O. 1990, c. C.38, §94 Auditors, the Waterloo Undergraduate Student Association is obligated to annually appoint qualified auditors for the Corporation, at the recommendation of the Board of Directors, to inspect and review all records, documents, books, accounts, and vouchers of the corporation and require of WUSA’s Directors and Officers any such information and explanations as, in the opinion of the Auditor, are necessary to enable the Auditor on the financial statements and consistency of WUSA's activities with the Generally Accepted Account Principles, statute (e.g. Income Tax Act), and the governing documents and policies to the members of the Corporation (at the Annual General Meeting) and their delegates (Councillors at the Students' Council).

Stemming from this, the Board included item 4(b) on agenda of the Annual General Meeting, which was duly held on the 22nd of October, 2019, to address the appointment of the Auditors for Fiscal Years 2020 to 2022.

Appointment by the AGM of the Auditors for FY2020

On behalf of the Board of Director's Auditor Request-for-Proposal (RFP) Selection Committee, the Vice President, Operations & Finance, presented to the Annual General Meeting the selected and recommended candidate from the outcome of the RFP process. Resulting from this recommendation, the Assembly adopted the following motion appointing PricewaterhouseCoopers (PWC), LLP as the Auditors of the Corporation:

Be it resolved that the Assembly appoints PricewaterhouseCoopers (PWC), LLP as the Auditor for the Corporation for FY2020 through FY2022, as recommended by the Board of Directors.

This email constitutes notice of the appointment of the Auditor in accordance with §94(2) of the Act.


Appendix D - Memorandum on the Financial Statements andthe Appointment of Auditors

40

Whereas Article 9.4(4) and (5) of the Bylaws require that the Vice President, Operations & Finance, ensure the presentation of the audited financial statements at both the Annual General Meeting and the Students’ Council, please be advised that the current Auditors (MNP, LLP), cease to serve as the Auditors of the Corporation effective the 4th of November, 2019.

Summary of Procurement Process

In the prior governing and fiscal year, the Students’ Council adopted Policy 51, Value-for-Money, requiring the Board of Directors to pursue solicitation of proposals through a reportable mechanism (e.g. RFP) for all vendors, services, or assets of considerable value at least once every five years. This corporate policy required the Board to develop an operating procedure to operationalize the policy and regulate the criteria for selection and define sufficiently considerable costs that warranted such reviews.

As the Board had not conducted a competitive review of the Auditors in some time, the Office of the Vice President, Operations & Finance, promptly initiated an RFP for the FY2020 Audit and beyond. The Board devolved its authority to a select committee for the purposes of review, standardized grading, and selection of the received proposals from the Vice President’s initiated RFP. The so called Auditor Request-for-Proposal (RFP) Selection Committee, reviewed the multiple received.

After thorough review to assess value-for-money of the bids and requests for updated bids to include costing for the Societies’ rotating “deep-dive” audits, the Auditor RFP Selection Committee conducted a ranked ballot of each committee member to rank their selections from the received proposals. PricewaterhouseCoopers (PWC), LLP was selected as the first choice candidate through the tabulated ranked vote, recommending PWC to the Annual General Meeting for appointment. With confidence, the Committee believes this proponent achieved the most suitable service levels and price based on balanced consideration of financial and nonfinancial factors relevant to audit procurement and based on a benchmark expenditure in service provision, use, and conclusion compared against the audits of compared of prior fiscal years.

Select Committee (Auditor RFP Selection Committee) Membership & Qualifications

The Select Committee was composed of the following members identified by name, title, and qualifications and/or responsibilities:

Voting Membership

o Seneca Velling | Vice President, Operations & Finance; Chair of the Select Committee | Bylaw

responsibilities for audits, financial statements, and legal or contractual affairs; Two-year tenure

on the Board of Directors

o Benjamin Easton | Secretary of the Corporation | Bylaw responsibilities for minutes, records, and

legal documents of the Corporation; member of the Board of Directors

o Suzanne Burdett | General Manager | Bylaw responsibilities for oversight of all financial aspects

of the organization; Certified General Accountant (CGA); Chartered Professional Accountant

(CPA); many years of experience on the Board of Directors as a non-voting resource member;

experienced in RFP and procurement processes


41

o Cheryl Pflug | Accounting Manager & Financial Officer | Comptroller for the Corporation;

Certified General Accountant (CGA); Chartered Professional Accountant (CPA)

Non-voting Resource Membership

o Michael Beauchemin | President, Vice Chair of the Board, and CEO | Bylaw and Policy

responsibilities for oversight of executive, policy compliance, and a signing authority for the

Corporation; Two-year tenure on the Board of Directors; former VP Finance for Engineering

Society

Request for Agenda Items

It is the intention of the Office of the Vice President, Operations & Finance, that this memorandum constitute a request for the inclusion of agenda items on the 3rd of November, 2019 regular meeting of the Students’ Council relating to: (1) the Appointment of the Auditor for information; and (2) the presentation of the Audited Financial Statements of the Corporation for FY2019 as affixed to this memorandum.

For further information, please contact [email protected], call 519-888-4567 ext. 33880, or visit SLC 2118M.

Thank you for your attention,

Seneca J. Velling, B.Sc. (He/Him)

Vice President, Operations & Finance Waterloo Undergraduate Student Association, University of Waterloo

519-888-4567 ext. 33880

@YourwusaVPOF

Student Life Centre, Room 2118M


42

University of WaterlooEngineering Society

Financial StatementsApril 30, 2019


43

Independent Auditor's Report

To the Members of University of Waterloo Engineering Society:

Opinion

We have audited the financial statements of University of Waterloo Engineering Society (the "Organization"), which comprise thestatement of financial position as at April 30, 2019, and the statements of operations, changes in net assets and cash flows for the yearthen ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Organization asat April 30, 2019, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accountingstandards for not-for-profit organizations.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standardsare further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independentof the Organization in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, andwe have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accountingstandards for not-for-profit organizations, and for such internal control as management determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Organization’s ability to continue as a goingconcern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Organization or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Organization’s financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standardswill always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and

perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a

basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from

error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related

disclosures made by management.

3-139 Northfield Drive West, Waterloo, Ontario, N2L 5A6, Phone: (519) 725-7700, 1 (866) 464-0740


44

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit

evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the

Organization’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw

attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to

modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,

future events or conditions may cause the Organization to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the

financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Waterloo, Ontario Chartered Professional Accountants

Licensed Public Accountants


45

University of Waterloo Engineering SocietyStatement of Financial Position

As at April 30, 2019

2019 2018

AssetsCurrent

Cash 210,212 191,687Accounts receivable 22,125 9,190Inventory (Note 3) 9,375 11,265

241,712 212,142

Capital assets (Note 4) 51,235 20,521

292,947 232,663

LiabilitiesCurrent

Accounts payable and accruals (Note 5) 76,813 43,836

Deferred contributions, capital assets (Note 6) 8,868 -

85,681 43,836

Net Assets 207,266 188,827

292,947 232,663

Approved on behalf of the Board

Director Director

The accompanying notes are an integral part of these financial statements

1


46

University of Waterloo Engineering SocietyStatement of OperationsFor the year ended April 30, 2019

2019 2018

RevenueAdvertisements 37,265 44,877Books 14,653 21,200Conference funding 25,728 24,142Donations 4,578 4,154Novelty store 15,494 22,088Society and other income 37,809 35,762Store 569,384 345,413

Total revenue 704,911 497,636

ExpensesAmortization 19,298 13,796Conferences 23,427 23,182Directorships 25,261 26,351Events 38,208 36,126General 37,485 27,749Operations 19,120 18,332Orientation week 133 2,413Printing costs 50,487 59,912Repairs and maintenance 1,847 7,116Salaries and wages 258,241 192,770Store operations 5,052 11,545Store purchases 395,126 253,600Supplies 13,491 13,125

Total expenses 887,176 686,017

Deficiency of revenue over expenses before other items (182,265) (188,381)

Other incomeStudent fees, net of refunds 200,704 187,288

Excess (deficiency) of revenue over expenses 18,439 (1,093)


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University of Waterloo Engineering SocietyStatement of Changes in Net Assets

For the year ended April 30, 2019

2019 2018

Net assets, beginning of year 188,827 189,920


Net assets, end of year 207,266 188,827


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University of Waterloo Engineering SocietyStatement of Cash Flows


2019 2018

Cash provided by (used for) the following activitiesOperating

Excess (deficiency) of revenue over expenses 18,439 (1,093)Amortization 19,298 13,796Amortization of deferred contributions (2,141) -

35,596 12,703Changes in working capital accounts

Accounts receivable (12,935) (4,397)Inventory 1,890 (823)Accounts payable and accruals 32,977 18,265

57,528 25,748Financing

Deferred contributions received for capital assets 11,009 -

InvestingPurchase of capital assets (50,012) (3,535)

Increase (decrease) in cash resources 18,525 22,213Cash resources, beginning of year 191,687 169,474

Cash resources, end of year 210,212 191,687


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University of Waterloo Engineering SocietyNotes to the Financial Statements


1. Incorporation and nature of the organization

University of Waterloo Engineering Society (the “Organization”) is unincorporated and is associated with the Federation ofStudents, University of Waterloo, which is registered as a not-for-profit organization and thus is exempt from income taxesunder the Income Tax Act of Canada (“the Act”). The Organization is dedicated to providing services to University ofWaterloo engineering students.

2. Significant accounting policies

The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profitorganizations set out in Part III of the CPA Canada Handbook - Accounting, as issued by the Accounting Standards Boardin Canada and include the following significant accounting policies:

Revenue recognition

The Organization follows the deferral method of accounting for contributions. Restricted contributions are recognized asrevenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue whenreceived or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

The Organization recognizes revenues from stores, advertising and book sales at the time the services are rendered tocustomers, when the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable,persuasive evidence of an arrangement exists and the sales price is fixed or determinable. Student fees are recognized asrevenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonablyassured.

Inventory

Inventory is valued at the lower of cost and net realizable value. Cost is determined by the first in, first out method. Suppliesare recorded as an expense in the year of purchase. Net realizable value is the estimated selling price in the ordinarycourse of business, less estimated costs of completion and selling costs.

Capital assets

Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair value at the date ofcontribution if fair value can be reasonably determined.

Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimateduseful lives. Amortization commences when the capital assets are available for use.

RateComputer equipment 2 yearsEquipment 3 yearsFurniture and fixtures 3 yearsLeasehold improvements 10 years

Contributed services

Student volunteers contribute an undetermined number of hours per year to assist the Organization in carrying out itsservice delivery activities. The University of Waterloo also provides a number of services to the Organization at no cost.Because of the difficulty of determining their value, contributed services are not recognized in the financial statements.

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2. Significant accounting policies (Continued from previous page)

Use of estimates

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizationsrequires management to make estimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenuesand expenses during the reporting period.

Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accountsis provided where considered necessary. Provisions are made for slow moving and obsolete inventory. Amortization isbased on the estimated useful lives of capital assets. Accrued liabilities are based on expected invoices to be receivedsubsequent to the current fiscal period that relate to the current fiscal period.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported inexcess of revenues and expenses in the periods in which they become known.

Financial instruments

The Organization recognizes its financial instruments when the Organization becomes party to the contractual provisions ofthe financial instrument. All financial instruments are initially recorded at their fair value, including financial assets andliabilities originated and issued in a related party transaction with management. Financial assets and liabilities originatedand issued in all other related party transactions are initially measured at their carrying or exchange amount in accordancewith CPA Canada Handbook Section 3840 Related Party Transactions (refer to Note 7).

At initial recognition, the Organization may irrevocably elect to subsequently measure any financial instrument at fair value. The Organization has not made such an election during the year. Fair value is determined by reference to recent arm’slength transactions.

The Organization subsequently measures investments in equity instruments quoted in an active market at fair value. Fairvalue is determined by published price quotations. Investments in equity instruments not quoted in an active market aresubsequently measured at cost less impairment. With the exception of financial liabilities indexed to a measure of theOrganization’s performance or value of its equity and those instruments designated at fair value, all other financial assetsand liabilities are subsequently measured at amortized cost.

Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financialinstruments subsequently measured at fair value are immediately recognized in the excess of revenues over expenses forthe current period. Conversely, transaction costs and financing fees are added to the carrying amount for those financialinstruments subsequently measured at cost or amortized cost.

Financial asset impairment

The Organization assesses impairment of all of its financial assets measured at cost or amortized cost. The Organizationgroups assets for impairment testing when available information is not sufficient to permit identification of each individuallyimpaired financial asset in the group; there are numerous assets affected by the same factors; no asset is individuallysignificant. Management considers whether the issuer is having significant financial difficulty; whether there has been abreach in contract, such as a default or delinquency in interest or principal payments in determining whether objectiveevidence of impairment exists. When there is an indication of impairment, the Organization determines whether it hasresulted in a significant adverse change in the expected timing or amount of future cash flows during the year. If so, theOrganization reduces the carrying amount of any impaired financial assets to the highest of: the present value of cash flowsexpected to be generated by holding the assets; the amount that could be realized by selling the assets; and the amountexpected to be realized by exercising any rights to collateral held against those assets. Any impairment, which is notconsidered temporary, is included in current year operations.

The Organization reverses impairment losses on financial assets when there is a decrease in impairment and the decreasecan be objectively related to an event occurring after the impairment loss was recognized. The amount of the reversal isrecognized in the excess of excess in the year the reversal occurs.

3. Inventory

The cost of inventories recognized as an expense and included in store purchases amounted to $393,361 (2018 -$251,364).

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4. Capital assets

2019 2018Accumulated Net book Net book

Cost amortization value value

Computer equipment 4,283 3,327 956 -Equipment 78,311 37,778 40,533 7,867Furniture and fixtures 31,911 30,605 1,306 2,058Leasehold improvements 21,568 13,128 8,440 10,596

136,073 84,838 51,235 20,521

5. Accounts payable and accruals

Included in accounts payable and accruals at April 30, 2019 is government remittances payable of nil (2018 - $2,075).

6. Deferred contributions, capital assets

Deferred contributions relating to capital assets represent the unamortized portion of contributed capital assets andrestricted contributions that were used to purchase the Organization's equipment. Recognition of these amounts as revenueis deferred to periods when the related capital assets are amortized.

7. Related party transactions

The University of Waterloo ("the University") has an economic interest in the Organization. The University collects thestudent fees on behalf of the Federation of Students - University of Waterloo and allocates to the Organization.

The University provides a number of services to the Organization at the University's cost. These services include space costfor the stores, janitorial services, utilities, repairs and maintenance services for the stores, and the telephone and voice mailsystem.

The University also provides a number of services to the Organization at no cost. These services include janitorial services,utilities and repairs and maintenance services for the general office, human resource services, and payroll processing.

Included in accounts payable and accruals at April 30, 2019 is $74,886 (2018 - $25,767) payable to the University in respectof these transactions.

8. Financial instruments

The Organization, as part of its operations, carries a number of financial instruments. It is management's opinion that theOrganization is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financialinstruments except as otherwise disclosed.

Liquidity risk

Liquidity risk is the risk that the Organization will encounter difficulty in meeting obligations associated with financialliabilities. Liquidity risk is also the risk of the Organization not being able to liquidate assets in a timely manner at areasonable price.

The Organization meets its liquidity requirements by preparing and monitoring detailed forecasts of cash flows fromoperations, anticipated investing and financing activities and holding assets that can be readily converted into cash.

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Federation Of Students,University Of Waterloo

Financial StatementsApril 30, 2019


53


To the Members of Federation Of Students, University Of Waterloo:

Opinion

We have audited the financial statements of Federation Of Students, University Of Waterloo (the "Organization"), which comprise thestatement of financial position as at April 30, 2019, and the statements of operations, changes in net assets and cash flows for the yearthen ended, and notes to the financial statements, including a summary of significant accounting policies.


Basis for Opinion



















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55

Federation of Students, University of WaterlooStatement of Financial Position


General Fund Dental Plan Health Plan UPass Orientation Student

Refugee

Program

Societies

Fund

2019 2018

Assets

Current

Cash and cash equivalent (Note 3) 731,993 225,609 2,294,096 202,916 350,633 4,615 1,114,838 4,924,700 4,030,061

Accounts receivable 281,568 - 323,609 - 42,796 - 34,512 682,485 223,492

Inventory (Note 4) 135,752 - - - - - 44,780 180,532 296,873

Prepaid expenses and deposits 49,369 68,817 73,755 - 14,109 2,748 45,940 254,738 212,908

Interfund receivable (payable) (4,468,310) 2,742,648 1,759,505 30,905 (45,807) 4,459 (23,400) - -

Health Plan claims fluctuation reserve - - 359,892 - - - - 359,892 385,874

Due from clubs - - - - - - 28,999 28,999 -

(3,269,628) 3,037,074 4,810,857 233,821 361,731 11,822 1,245,669 6,431,346 5,149,208

Capital assets (Note 5) 1,555,266 - - - - - 248,459 1,803,725 1,584,603

Long-term investments (Note 6) 5,216,952 - - - - - - 5,216,952 5,402,743

3,502,590 3,037,074 4,810,857 233,821 361,731 11,822 1,494,128 13,452,023 12,136,554

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Federation of Students, University of WaterlooStatement of Financial Position



Refugee

Program

Societies

Fund

2019 2018

Liabilities

Current

Accounts payable and accruals (Note 7), (Note 8) 2,112,437 - - - 5,073 - 135,177 2,252,687 2,351,323

Deferred revenue (Note 9) 26,251 451,180 516,010 - 1,070 - 71,197 1,065,708 987,163

Due to clubs 243,990 - - - - - - 243,990 242,859

2,382,678 451,180 516,010 - 6,143 - 206,374 3,562,385 3,581,345

Contingencies (Note 10)

Subsequent event (Note 13)

Net Assets

Interally restricted - 2,585,894 4,294,847 233,821 355,588 11,822 1,287,754 8,769,726 7,302,637

Unrestriced 1,119,912 - - - - - - 1,119,912 1,252,572

1,119,912 2,585,894 4,294,847 233,821 355,588 11,822 1,287,754 9,889,638 8,555,209

3,502,590 3,037,074 4,810,857 233,821 361,731 11,822 1,494,128 13,452,023 12,136,554

Approval on behalf of the Board

Director Director


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Federation of Students, University of WaterlooStatement of OperationsFor the year ended April 30, 2019


Refugee

Program

Societies

Fund

2019 2018

Revenue 5,108,908 4,576,945 5,751,876 5,210,069 799,008 65,152 2,011,922 23,523,880 23,008,653

Cost of sales 3,132,118 4,572,721 4,608,341 5,157,374 - 85,136 - 17,555,690 17,650,766

Gross margin 1,976,790 4,224 1,143,535 52,695 799,008 (19,984) 2,011,922 5,968,190 5,357,887

Operating expenses 6,036,267 - - - 654,063 - 2,686,864 9,377,194 9,348,146

Excess (deficiency) of revenue over expenses before other items (4,059,477) 4,224 1,143,535 52,695 144,945 (19,984) (674,942) (3,409,004) (3,990,259)

Other income (expense)

Student fees 3,629,012 - - - - - 814,585 4,443,597 4,216,133

Miscellaneous - - - - - - 2,031 2,031 2,219

Gain (loss) on sale of capital assets 371 - - - - - - 371 (1,086)

Unrealized gain on investments 297,434 - - - - - - 297,434 174,984

Total other income 3,926,817 - - - - - 816,616 4,743,433 4,392,250

Excess (deficiency) of revenue over expenses (132,660) 4,224 1,143,535 52,695 144,945 (19,984) 141,674 1,334,429 401,991


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Federation of Students, University of WaterlooStatement of Changes in Net Assets



Refugee

Program

Societies Fund 2019 2018

Net assets, beginning of year 1,252,572 2,581,670 3,151,312 181,126 210,643 31,806 1,146,080 8,555,209 8,153,218


Net assets, end of year 1,119,912 2,585,894 4,294,847 233,821 355,588 11,822 1,287,754 9,889,638 8,555,209


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Federation of Students, University of WaterlooStatement of Cash Flows



Refugee

Program

Societies

Fund

2019 2018

Cash provided by (used for) the following activites

Operating


Amortization 578,804 - - - - - 79,192 657,996 630,933

(Gain) loss on sale of capital assets (371) - - - - - - (371) 1,086

Unrealized gain on investments (297,434) - - - - - - (297,434) (174,984)

148,339 4,224 1,143,535 52,695 144,945 (19,984) 220,866 1,694,620 859,026

Changes in working capital accounts

Accounts receivable (129,970) - (323,609) - (25,857) - 20,443 (458,993) 27,951

Inventory 108,962 - - - - - 7,379 116,341 (34,672)

Health Plan claims fluctuation reserve - - 25,982 - - - - 25,982 47,412

Prepaid expenses and deposits 15,493 (12,702) (11,000) - 9,227 585 (43,433) (41,830) (5,324)

Accounts payable and accruals (76,132) - - - (41,127) (547) 19,170 (98,636) 588,531

Deferred revenue (4,825) 23,500 (6,710) - (879) - 67,459 78,545 (17,133)

Interfund receivable (payable) 140,252 (92,892) (68,805) (54,787) 57,502 (13,007) 31,737 - -

Due to (from) clubs 10,245 - - - - - (38,113) (27,868) (14,151)

212,364 (77,870) 759,393 (2,092) 143,811 (32,953) 285,508 1,288,161 1,451,640

Investing

Proceeds on disposal of capital assets - - - - - - - - 619

Purchase of capital assets (642,294) - - - - - (234,453) (876,747) (448,398)

Proceeds on sale of investments 500,000 - - - - - - 500,000 -

Purchase of investments (16,775) - - - - - - (16,775) (24,085)

(159,069) - - - - - (234,453) (393,522) (471,864)

Increase (decrease) in cash resources 53,295 (77,870) 759,393 (2,092) 143,811 (32,953) 51,055 894,639 979,776

Cash resources, beginning of year 678,698 303,479 1,534,703 205,008 206,822 37,568 1,063,783 4,030,061 3,050,285

Cash resources, end of year (Note 3) 731,993 225,609 2,294,096 202,916 350,633 4,615 1,114,838 4,924,700 4,030,061


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Federation Of Students, University Of WaterlooNotes to the Financial Statements



Federation Of Students, University Of Waterloo (the “Organization”) is incorporated under the Ontario Corporations Actwithout share capital. The Organization is a registered not-for-profit organization and thus is exempt from income taxesunder section 149(1)(e) of the Income Tax Act of Canada (the "Act"). In order to maintain its status as a registered not-for-profit organization under the Act, the Organization must meet certain requirements within the Act. In the opinion ofmanagement these requirements have been met. The Organization is dedicated to providing services to University ofWaterloo students.


The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profitorganizations as issued by the Accounting Standards Board in Canada and include the following significant accountingpolicies:

Fund accounting

The Organization follows the restricted fund method of accounting for contributions, and maintains seven funds: GeneralFund, Dental Plan Fund, Health Plan Fund, UPass Fund, Orientation Fund, Student Refugee Program Fund and SocietiesFund.

The General Fund reports the Organization’s unrestricted revenues from the day-to-day operations of the Organization.

The Dental Plan Fund reports the Organization’s internally restricted revenues to pay dental insurance premiums on behalfof members. The fund is intended to be used to fund insurance premiums for members covered under the program.

The Health Plan Fund reports the Organization’s internally restricted revenues to pay health premiums on behalf ofmembers. The fund is intended to be used to fund insurance premiums for members covered under the program.

The UPass Fund reports the Organization’s internally restricted revenues to pay universal bus pass fees on behalf ofmembers. The fund is intended to be used to fund universal bus pass fees for members covered under the program.

The Orientation Fund reports the Organization’s internally restricted revenues to pay for costs related to Orientation Weekon behalf of members. The fund is intended to be used to fund activities, salaries and operating expenses that pertain toOrientation Week for members covered under the program.

The Student Refugee Program Fund reports the Organization’s internally restricted revenues to pay tuition and studenthousing fees for refugee students. The fund is intended to be used to assist refugee students in attending the University ofWaterloo.

The Societies Fund reports the Organization’s internally restricted revenues to pay the operating expenses of nine studentsocieties. The fund is intended to be used to provide services to University of Waterloo students in certain faculties.

Inventory


Capital assets

Capital assets are recorded at cost. Leasehold improvements are amortized on a straight-line basis over a ten-year period.All other assets, net of estimated future salvage values, are amortized on a straight-line basis over 3 to 5 years.Amortization commences when leasehold improvements and furniture and fixtures are available for use.

Cash and cash equivalents

Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less.

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Revenue recognition

Fees are recognized as revenue of the appropriate fund. Amounts received for other than specific fund purposes arerecognized as revenue of the General Fund. Student Federation fees are included in income when earned.

Contributions are recognized as revenue when received or receivable if the amount to be received can be reasonablyestimated and collection is reasonably assured. General, bar and food sales are recognized as revenue upon transfer ofproduct.

Health and Dental Plan revenue is recognized as revenue in the year in which the fees are earned.

Investment income is recognized as revenue when earned.


Student volunteers contribute an undetermined number of hours during the year to assist the Organization in carrying out itsservice delivery activities. The University of Waterloo also provides a number of services to the Organization at no cost.Because of the difficulty of determining their value, contributed services are not recognized in the financial statements.



At initial recognition, the Organization may irrevocably elect to subsequently measure any financial instrument at fair value.The Organization has not made such an election during the year.

The Organization subsequently measures investments in equity instruments quoted in an active market at fair value. Fairvalue is determined by published price quotations. Investments in equity instruments not quoted in an active market aresubsequently measured at cost less impairment. With the exception of financial liabilities indexed to a measure of theOrganization’s performance and those instruments designated at fair value, all other financial assets and liabilities aresubsequently measured at amortized cost.

Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financialinstruments subsequently measured at fair value are immediately recognized in the excess (deficiency) of revenues overexpenses for the current period. Conversely, transaction costs and financing fees are added to the carrying amount forthose financial instruments subsequently measured at cost or amortized cost.


The Organization assesses impairment of all of its financial assets measured at cost or amortized cost. The Organizationgroups assets for impairment testing when available information is not sufficient to permit identification of each individuallyimpaired financial asset in the group; there are numerous assets affected by the same factors or no asset is individuallysignificant. Management considers whether the issuer is having significant financial difficulty or whether there has been abreach in contract, such as a default or delinquency in interest or principal payments in determining whether objectiveevidence of impairment exists. When there is an indication of impairment, the Organization determines whether it hasresulted in a significant adverse change in the expected timing or amount of future cash flows during the year. If so, theOrganization reduces the carrying amount of any impaired financial assets to the highest of: the present value of cash flowsexpected to be generated by holding the assets; the amount that could be realized by selling the assets; and the amountexpected to be realized by exercising any rights to collateral held against those assets. Any impairment, which is notconsidered temporary, is included in current year operations.

The Organization reverses impairment losses on financial assets when there is a decrease in impairment and the decreasecan be objectively related to an event occurring after the impairment loss was recognized. The amount of the reversal isrecognized in operations in the year the reversal occurs.

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Use of estimates


Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accountsis provided when considered necessary. Provisions are made for slow moving and obsolete inventory. Amortization is basedon the estimated useful lives of capital assets. Accrued liabilities are based on expected invoices to be received subsequentto the current fiscal period that relate to the current fiscal period.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported inoperations in the periods in which they become known.

3. Cash and cash equivalent

2019 2018

Cash 4,874,484 3,955,701Canadian money market mutual funds 50,216 74,360

4,924,700 4,030,061

4. Inventory

The cost of inventories recognized as an expense and included in cost of sales and operating expenses amounted to$3,946,917 (2018 - $3,992,854).

5. Capital assets



Furniture and fixtures 3,441,381 3,066,933 374,448 395,487Leasehold improvements 3,843,170 2,413,893 1,429,277 1,189,116

7,284,551 5,480,826 1,803,725 1,584,603

Amortization expense for the year amounted to $657,996 (2018 - $630,933).

6. Long-term investments

2019 2018

Measured at fair value:Canadian equity mutual funds 5,216,952 5,402,743


Included in accounts payable and accruals are government remittances payable of $16,120 (2018 - $15,573).

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The University of Waterloo (the "University") has an economic interest in the Organization. The University provides anumber of services to the Organization at no cost. The University collects the student fees on behalf of the Organization andholds the liquor license for the bar operations of the Organization.

The University provides a number of services to the Organization at the University's cost. These services include space costfor all the businesses, janitorial services, utilities and repairs and maintenance services for the businesses, telephone andvoice mail system and orders of alcohol for bar operations.

The University also provides a number of services to the Organization at no cost. These include janitorial services, utilitiesand repairs and maintenance services for the general office, human resource department services, payroll processing andinsurance on the buildings.

International News is linked to the Watcard System of the University that allows Watcards to be used at this location. TheOrganization pays a user's fee of 5% of the purchases made on Watcard.

2019 2018

Amount due to University of Waterloo, non-interest bearing, unsecured,with no set repayment terms

1,492,920 934,002

The amount due is included in accounts payable and accruals.

9. Deferred revenue

Deferred revenue includes fees and other income collected relating to the next fiscal year and deferred contributions relatedto capital assets.

Deferred contributions relating to capital assets represent the unamortized portion of contributed capital assets andrestricted contributions that were used to purchase the Organization’s equipment. Recognition of these amounts as revenueis deferred to future periods when the related capital assets are amortized.

10. Contingencies

Student clubs:

There are a number of student clubs that operate for the benefit of specific University of Waterloo student groups. TheOrganization has custody of the clubs' cash balances for the purposes of paying club expenditures. If a club's expenditureswere to exceed the amount of cash payable to the club, the Organization would be liable for the shortfall.

11. Pension plan

Thirty-three (2018 - thirty-two) of the employees of the Organization are members of the University of Waterloo DefinedBenefit Pension Plan (the "Plan"), a plan in which the University of Waterloo permits the Organization to participate. ThePlan was not fully funded at April 30, 2019 and any unfunded liability is the responsibility of the plan sponsor (the Universityof Waterloo). Any payments made by the Organization towards the unfunded liability of the plan sponsor will be expensedas incurred. Contributions to the Plan made by the Organization during the year, on behalf of its employees, amounted to$129,026 (2018 - $131,921) and are included in the statement of operations.

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Interest rate risk

Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows associated with theinstruments will fluctuate due to changes in market interest rates.

Interest rate exposure of the Organization arises from its interest bearing assets. The Organization has no interest bearingliabilities.

The Organization's cash includes amounts on deposit with financial institutions that earn interest at market rates.

The Organization manages its exposure to the interest rate risk of its cash by maximizing the interest income earned onexcess funds while maintaining the minimum liquidity necessary to conduct operations on a day-to-day basis. Fluctuationsin market rates of interest on cash do not have a significant impact on the Organization's results of operations.

Investments in equity securities are not exposed to significant interest rate risk.

Liquidity risk

Liquidity risk is the risk that the Organization will not be able to meet a demand for cash or fund its obligations as they comedue. Liquidity risk also includes the risk of the Organization not being able to liquidate assets in a timely manner at areasonable price.

The Organization meets its liquidity requirements by preparing and monitoring detailed forecasts of cash flows fromoperations and anticipated investing and financing activities and holding assets that can be readily converted into cash.

Other price risk

Other price risk refers to the risk that the fair value of financial instruments or future cash flows associated with theinstruments will fluctuate because of changes in market prices (other than those arising from interest rate risk).

The Organization is exposed to equity securities prices risk because of its investment in equity index pooled funds.

13. Subsequent event

Subsequent to year end, the Organization changed its operating name to Waterloo Undergraduate Student Association("WUSA").

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Federation of Students, University of WaterlooStatement of Departmental Operations - General Fund


2019 2018

Deficiency of revenue over expenses before other items arising from:

Commercial services (page 12) (295,624) (288,581)

Support services (page 13) (3,140,405) (3,093,594)

Campus life (page 14) (206,316) (219,582)

Student government (page 15) (299,562) (290,159)

Other (page 15) (117,570) (111,546)

Deficiency of revenue over expenses before other items (4,059,477) (4,003,462)

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Federation of Students, University of WaterlooStatement of Departmental Operations - General Fund, Commercial Services


2019 2018

Revenue

Bombshelter Pub 749,975 1,370,051

Director of Commerical Operations 2,703 -

Dispensary 91,021 85,180

Feds Used Books 764,248 922,586

International News 1,734,881 1,604,761

Service Kitchen 738,727 609,879

Student Handbook 46,744 40,158

Student Life Centre 650,936 625,745

Wasabi/Campus Bubble - 322,796

Total revenue 4,779,235 5,581,156

Expenses

Bombshelter Pub 1,075,776 1,621,613

Director of Commerical Operations 6,444 3,029

Dispensary 150,213 147,576

Feds Used Books 622,904 772,997

International News 1,715,766 1,613,415

Service Kitchen 637,816 546,773

Student Handbook 40,123 43,153

Student Life Centre 805,655 773,628

Wasabi/Campus Bubble 20,162 347,553

Total expenses 5,074,859 5,869,737


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Federation of Students, University of WaterlooStatement of Departmental Operations - General Fund, Support Services


2019 2018

Revenue

Communications 3,103 500

General 161,820 101,412

IT department 2,578 6,401

Marketing 72,399 84,271


Expenses

Communications 23,976 10,296

General 2,776,674 2,702,005

IT department 355,398 328,599

Marketing 224,257 245,278

Total expenses 3,380,305 3,286,178

Deficiency of revenue over expenses before other items (3,140,405) (3,093,594)

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Federation of Students, University of WaterlooStatement of Departmental Operations - General Fund, Campus Life


2019 2018

Revenue

Bike Centre 15,953 14,023

Campus Response Team 4,234 5,263

Clubs 820 1,657

Co-op Connection 10,513 7,675

Director of Campus Life 82 -

Food Bank 1,068 1,450

GLOW 1,200 -

International and Canadian Student Network 22,820 33,445

Off-campus community 14 600

Orientation - 1,750

Special events - programming 21,296 28,462

UWSP 5,116 3,960

Warrior Tribe 4 160


Expenses

Bike Centre 12,937 14,192

Campus Response Team 18,759 20,340

Clubs 29,312 26,033

Co-op Connection 8,715 12,079

Cultural Caravan 255 3,175

Director of Campus Life 5,116 9,276

Food Bank 4,482 4,151

GLOW 10,191 11,022

International and Canadian Student Network 26,619 39,855

Mates 5,548 5,233

Off-campus community 8,396 4,567

Orientation 1,847 8,756

Raise 3,787 -

Services Manager 40,552 35,426

Societies 425 2,280

Special events - programming 95,346 97,698

UWSP 8,160 9,251

Volunteer Centre 2,706 2,363

Warrior Tribe 1,044 5,807

Women's Centre 5,239 6,523



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Federation of Students, University of WaterlooStatement of Departmental Operations - General Fund, Student Government and Other


2019 2018

Student government

Revenue

President 2,280 8,436

Student government 323 200

Vice president, operations and finance 3,166 2,638

Vice president, education - 1,075

Vice president, internal 92 1,250


Expenses

President 64,836 66,862

Student government 7,662 4,754

Vice president, operations and finance 60,053 59,863

Vice president, education 89,807 90,967

Vice president, internal 83,065 81,312



Other

Revenue

Elections 791 -

Ontario Undergraduate Student Alliance - 1,156

Total revenue 791 1,156

Expenses

Academic affairs 168 667

Elections 8,320 3,537

Local affairs 120 90

Ontario Undergraduate Student Alliance 107,240 106,703

Research and policy officer 760 271

Stakeholder relations officer 1,753 1,434



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Federation of Students, University of Waterloo Statement of Operations - Societies Fund


2019 2018

RevenueApplied Health Science (page 17) 7,722 11,908Architecture (page 18) 2,330 4,062Arts (page 19) 133,830 180,675Engineering (page 20) 704,911 497,636Environmental (page 21) 39,131 47,641Mathematics (page 22) 986,632 867,985Optometry (page 23) 41,542 31,253Pharmacy (page 24) 39,274 13,542Science (page 25) 56,550 50,340

Total revenue 2,011,922 1,705,042

Operating expensesApplied Health Science (page 17) 47,248 34,328Architecture (page 18) 13,227 11,649Arts (page 19) 279,889 383,509Engineering (page 20) 887,176 686,017Environmental (page 21) 84,014 91,421Mathematics (page 22) 1,128,248 886,947Optometry (page 23) 41,930 37,230Pharmacy (page 24) 60,348 63,726Science (page 25) 144,784 115,641

Total operating expenses 2,686,864 2,310,468



Student feesApplied Health Science (page 17) 23,719 21,259Architecture (page 18) 9,257 8,856Arts (page 19) 205,620 203,178Engineering (page 20) 200,704 187,288Environmental (page 21) 50,268 49,778Mathematics (page 22) 185,820 185,500Optometry (page 23) 8,292 5,400Pharmacy (page 24) 24,675 45,080Science (page 25) 106,230 80,047

Total student fees 814,585 786,386

MiscellaneousApplied Health Science (page 17) 4,331 -Architecture (page 18) - 119Mathematics (page 22) (10,300) (900)Pharmacy (page 24) 8,000 3,000

Total miscellaneous 2,031 2,219

Total other income 816,616 788,605

Excess of revenue over expenses 141,674 183,179

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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Applied Health Science


2019 2018

Revenue

Events 3,227 883

Novelties 4,495 11,025


Operating expenses

Amortization 5,181 387

Events 23,133 23,018

General 6,144 2,435

Novelty purchases 12,790 8,488

Total operating expenses 47,248 34,328


Other income

Student fees, net of refunds 23,719 21,259

Miscellaneous 4,331 -


Deficiency of revenue over expenses (11,476) (1,161)

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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Architecture


2019 2018

Revenue

Events 960 3,051


Other 45 -


Operating expenses

Amortization 102 203

Events 6,148 6,226

General 3,804 5,220

Novelty purchases 3,173 -



Other income


Miscellaneous - 119


Excess (deficiency) of revenue over expenses (1,640) 1,388

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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Arts


2019 2018

Revenue

Events 15,280 35,801


Other 107,083 136,082


Operating expenses

Allotments 26,205 69,555

Amortization 2,018 1,730

Arts Student Union award 400 400

Events 189,731 248,842

Executive and council meetings 3,497 2,013

General 39,731 44,719

Grants 3,651 4,750


Promotions 932 1,052



Other income


Excess of revenue over expenses 59,561 344

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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Engineering


2019 2018

Revenue

Advertisements 37,265 44,877

Books 14,653 21,200

Novelties 25,728 22,088

Other 57,881 64,058

Store 569,384 345,413


Operating expenses


Conferences 23,427 23,182

Directorships 25,261 26,351

Events 38,208 36,126

General 37,485 27,749

Operations 19,120 18,332

Orientation week 133 2,413

Printing costs 50,487 59,912

Repairs and maintenance 1,847 7,116

Salaries and wages 258,241 192,770

Store operations 5,052 11,545

Store purchases 395,126 253,600

Supplies 13,491 13,125



Other income



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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Environmental


2019 2018

Revenue

Events 2,761 9,021

Other 295 460

Store 36,075 38,160


Operating expenses



Events 27,470 30,851

General 3,056 2,984


Store general - 33


Utilities 2,324 2,407



Other income



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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Mathematics


2019 2018

Revenue

Catering 43,294 46,815

Events 5,003 1,826


Other 14,105 16,329

Store 914,913 793,558


Operating expenses

Allotments 34,605 -


Events 55,399 38,614

External funding - 67

General 113,699 48,741



Store general 11,292 11,454


Total operating expenses 1,128,248 886,947




Miscellaneous (10,300) (900)

Total other income (expense) 175,520 184,600


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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Optometry


2019 2018

Revenue

Events 36,622 26,688

Other 4,920 4,565


Operating expenses

Amortization - 183

Events 37,517 32,836

General 3,858 2,668

Novelty purchases 555 1,543


Deficiency of revenue over expenses before other items (388) (5,977)

Other income


Excess (deficiency) of revenue over expenses 7,904 (577)

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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Pharmacy


2019 2018

Revenue

Events 20,641 84


Other 11,501 4,379


Operating expenses

Club fees 5,983 12,939

Events 37,233 29,918

General 6,643 10,486




Other income


Miscellaneous 8,000 3,000



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Federation of Students, University of Waterloo Statement of Operations - Societies Fund, Science


2019 2018

Revenue

Events 21,714 30,857

Store 34,836 19,483


Operating expenses



Events 47,376 55,825

General 13,041 8,220


Utilities 2,058 1,297



Other income



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Federation Of Students,University Of Waterloo

Science Students' SocietyFinancial Statements

April 30, 2019


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To the Members of the Federation Of Students, University Of Waterloo - Science Society:

Opinion

We have audited the financial statements of Federation Of Students, University Of Waterloo - Science Society (the "Organization"),which comprise the statement of financial position as at April 30, 2019, and the statements of operations, changes in net assets andcash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.


Basis for Opinion


Other Matter

The statement of financial position as at April 30, 2018 and the statements of operations, changes in net assets and cash flows for theyear then ended, which are presented for comparative purposes, are unaudited.


















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Federation Of Students, University Of WaterlooScience Students' Society

Statement of Financial PositionAs at April 30, 2019

2019 2018(Unaudited)

AssetsCurrent

Cash 87,812 77,820Accounts receivable (Note 6) 8,865 1,404Inventory (Note 3) 2,002 1,978

98,679 81,202

Capital assets (Note 7) 1,035 123

99,714 81,325

LiabilitiesCurrent

Accounts payable and accruals (Note 4) (Note 6) 5,724 19,740Deferred contributions - 122Due to clubs (Note 5) 26,874 12,343

32,598 32,205

Contingencies (Note 5)

Net Assets 67,116 49,120

99,714 81,325

Approved on behalf of the Board{{esl:Signer1:Signature:size(200,40)}} {{esl:Signer2:Signature:size(200,40)}}

Director Director


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Statement of OperationsFor the year ended April 30, 2019


RevenueEvents 21,714 30,857Store 34,836 19,483


ExpensesAllotments 47,663 31,878Amortization 329 734Events 47,376 55,825General 13,041 8,220Store purchases 34,317 17,687Utilities 2,058 1,297



Other itemsStudent fees, net of refunds 106,230 80,047



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Statement of Changes in Net AssetsFor the year ended April 30, 2019


Net assets, beginning of year 49,120 34,374


Net assets, end of year 67,116 49,120


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Statement of Cash FlowsFor the year ended April 30, 2019


Cash provided by (used for) the following activitiesOperating

Excess of revenue over expenses 17,996 14,746Amortization 329 734

18,325 15,480Changes in working capital accounts

Accounts receivable (7,461) (545)Inventory (24) (1,033)Accounts payable and accruals (14,016) 9,806Deferred contributions (122) (735)Due to clubs 14,531 4,007

11,233 26,980Investing

Purchase of capital assets (1,241) -

Increase in cash resources 9,992 26,980Cash resources, beginning of year 77,820 50,840

Cash resources, end of year 87,812 77,820


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Notes to the Financial StatementsFor the year ended April 30, 2019


Federation Of Students, University Of Waterloo - Science Society (the “Organization”) is unincorporated and is associatedwith the Federation of Students, University of Waterloo, which is registered as a not-for-profit organization and thus isexempt from income taxes under the Income Tax Act of Canada (the "Act"). The Organization is dedicated to providingservices to University of Waterloo Science students.


The financial statements have been prepared in accordance with Canadian accounting standards for not-for-profitorganizations set out in Part III of the CPA Canada Handbook - Accounting, as issued by the Accounting Standards Boardin Canada, which are part of Canadian generally accepted accounting principles, and include the following significantaccounting policies:

Revenue recognition

The Organization follows the deferral method of accounting for contributions. Restricted contributions are recognized asrevenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue whenreceived or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured

The Organization recognizes revenues from the store at the time the services are rendered to customers, when thecustomer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidenceof an arrangement exists and the sales price is fixed or determinable. Student fees are recognized as revenue whenreceived or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

Inventory


Capital assets

Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair value at the date ofcontribution if fair value can be reasonably determined.

Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimateduseful lives. Amortization commences when the capital assets are available for use.

RateEquipment 3 years


Student volunteers contribute an undetermined number of hours per year to assist the Organization in carrying out itsservice delivery activities. The University of Waterloo also provides a number of services to the Organization at no cost.Because of the difficulty of determining their value, contributed services are not recognized in the financial statements.

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Use of estimates


Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accountsis provided where considered necessary. Provisions are made for slow moving and obsolete inventory. Amortization isbased on the estimated useful lives of capital assets. Accrued liabilities are based on expected invoices to be receivedsubsequent to the current fiscal period that relate to the current fiscal period.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported inexcess of revenues and expenses in the periods in which they become known.



At initial recognition, the Organization may irrevocably elect to subsequently measure any financial instrument at fair value.The Organization has not made such an election during the year. Fair value is determined by reference to recent arm’slength transactions.

The Organization subsequently measures investments in equity instruments quoted in an active market at fair value. Fairvalue is determined by published price quotations. Investments in equity instruments not quoted in an active market aresubsequently measured at cost less impairment. With the exception of financial liabilities indexed to a measure of theOrganization’s performance or value of its equity and those instruments designated at fair value, all other financial assetsand liabilities are subsequently measured at amortized cost.

Transaction costs and financing fees directly attributable to the origination, acquisition, issuance or assumption of financialinstruments subsequently measured at fair value are immediately recognized in the excess of revenues over expenses forthe current period. Conversely, transaction costs and financing fees are added to the carrying amount for those financialinstruments subsequently measured at cost or amortized cost.


The Organization assesses impairment of all of its financial assets measured at cost or amortized cost. The Organizationgroups assets for impairment testing when available information is not sufficient to permit identification of each individuallyimpaired financial asset in the group; there are numerous assets affected by the same factors; no asset is individuallysignificant. Management considers whether the issuer is having significant financial difficulty; whether there has been abreach in contract, such as a default or delinquency in interest or principal payments in determining whether objectiveevidence of impairment exists. When there is an indication of impairment, the Organization determines whether it hasresulted in a significant adverse change in the expected timing or amount of future cash flows during the year. If so, theOrganization reduces the carrying amount of any impaired financial assets to the highest of: the present value of cash flowsexpected to be generated by holding the assets; the amount that could be realized by selling the assets; and the amountexpected to be realized by exercising any rights to collateral held against those assets. Any impairment, which is notconsidered temporary, is included in current year operations.

The Organization reverses impairment losses on financial assets when there is a decrease in impairment and the decreasecan be objectively related to an event occurring after the impairment loss was recognized. The amount of the reversal isrecognized in operations in the year the reversal occurs.

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3. Inventory

The cost of inventories recognized as an expense and included in store purchases amounted to $34,317 (2018 – $17,687)


Included in accounts payable and accruals at April 30, 2019 is government remittances payable of $2,289 (2018 - $1,300).

5. Contingencies

There are a number of student clubs that operate for the benefit of specific science student groups. The Organization hascustody of the clubs' cash balances for the purpose of paying club expenditures. If a club's expenditures were to exceed theamount of cash held by the Organization, the Organization would be liable for the shortfall. Any amount required to be paidwill be expensed in the year incurred.


The University of Waterloo (the "University") has an economic interest in the Organization. The University provides anumber of services to the Organization at the University's cost. The University also collects the student fees on behalf of theFederation of Students, University of Waterloo (the "Federation") which then allocates to the Organization.

The University also provides a number of services to the Organization at no cost. These services include janitorial services,utilities and repairs and maintenance services for the general office, insurance and human resources services.

Included in accounts payable and accruals at April 30, 2019 is $158 (2018 - $18,114) payable to the Federation.

Included in accounts receivable at April 30, 2019 is $1,052 (2018 - $878) receivable from the Federation.

7. Capital assets



Equipment 3,445 2,410 1,035 123

Amortization of capital assets for the year amounted to $329 (2018 - $734).



Liquidity risk

Liquidity risk is the risk that the Organization will encounter difficulty in meeting obligations associated with financialliabilities. Liquidity risk is also the risk that the Organization will not be able to liquidate assets in a timely manner at areasonable price.

The Organization meets its liquidity requirements by preparing and monitoring detailed forecasts of cash flows fromoperations and anticipated investing and financing activities and holding assets that can be readily converted into cash.

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Engineering Caucus Report - Nov. 3, 2019

Jason Small, Megan Town

Office Hours Megan held office hours in POETS from 12-1pm on the following days:

● Oct. 22 ● Oct. 29

No visitors on Oct. 22 For the rest of the term, Megan is holding office hours in POETS every Tuesday 12-1pm. Jason and Megan are bookable for both in-person and video call meetings at https://wusaengineering.appointlet.com

Recent Activities of Caucus Members Jason:

● On behalf of the General Meeting Engagement Committee, I’m looking into technically and legally feasible options for online voting at GMs. I had a meeting with Pratik Patel (IT Manager) and Seneca in which the numerous technical challenges of live voting were brought up. As post-hoc voting is more technically feasible, Seneca is now obtaining a second-opinion as to its legality under the Corporations Act.

● As part of my separate role as Engineering Undergraduate Senator: ○ Was unable to attend the October 21th Senate meeting due to civic

commitments, but liaised with at-large senator Alex Lee to ensure that notes were taken and important points were raised.

■ Items approved include the 2020-2025 strategic plan, important dates for the 2020-2021 year, and various program requirement changes

● Due to a late Labour Day, the Fall 2020 term will only have one study day between the end of classes and the start of exams; concerns were raised around this with the suggestion made that there be two Sundays with exams instead; the response given was that the effects would be looked into to determine the tradeoff that should be made in the future.

■ Updates and discussions occurred around the Student Experience Review (report now released) and the Strategic Mandate Agreement

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Appendix E - Representative Reports

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■ See my notes if you want to know more ○ I’m producing meeting notes available at bit.ly/UWSenate (please share with all

interested persons) Megan:

● Working on advocacy policy on Exam Scheduling and Relief - at the time of writing it is under review by EAC

● Working on another issue brought forward by a constituent - more info to come at the December meeting

● EngSoc Board: nothing of note

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Enterprise, Opportunity, and Innovation (EOI) Fund: Voluntary Student Contribution

Report of the Internal Funding Committee (IFC)

Submitted by: Seneca J. Velling,

VP Operations & Finance

26 October 2019

operated by the Federation of Students, University of Waterloo



Appendix F - Report of the Internal Funding Committee

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INTERNAL FUNDING COMMITTEE Committee Report & Proposal

1.0 Proposal for Voluntary Student Contribution The Internal Funding Committee (IFC) recommends the Students’ Council create a voluntary student contribution (VSC) levy for the EOI Fund. The Committee reviewed the EOI Fund’s mandate, noting that the fund currently cannot support its mandate and on campus resources for similar support to students do not exist in other forms. With further consideration, the Committee proposed the creation of an approximately $5.00 fee as a voluntary donation that would be optional on point of payment.

Decision: IFC recommends Council implement a $5.00 VSC coupled with efforts to increase awareness of the fund for use by student groups for projects, conferences, and similar; by student-run/developed start-ups for funding; and from individuals seeking academic and professional development experiences.

IFC seeks to ensure the ability to opt-out is seamless for the student if they wish not pay the fee, but also highlight the value the fund can offer. Generally, the Committee does not wish to harm the reputation of the Waterloo Undergraduate Student Association by adding new fees, but sees this as a worthwhile opportunity for significant student benefit.

Recommendation Adopted.

Notes on Voluntary Student Contribution (VSC) A Voluntary Student Contribution (VSC) is a student donation to the Endowment Fund included on the list of optional and voluntary fees for undergraduate students, in an amount set by the Students’ Council, at the recommendation of the Committee.

All efforts will be made to ensure that monies collected through the VSC are tax deductible and such status shall be, to a reasonable extent, communicated to the parties from whom voluntary contributions are sought. Since the fund is held under the University of Waterloo, the University will likely be able to issue tax receipts for the contributions with other standard tax receipting currently issued.

The collection of the VSC is subject to the following conditions:

a. The VSC is collected according to the University of Waterloo’s policies on incidental fees, and complies with any fee protocols or agreements entered into between the WUSA and the University of Waterloo;

b. All proceeds generated by the VSC become part of the Endowment Fund; c. The VSC shall be entirely voluntary/optional at point-of-payment, insofar as possible; otherwise,

all VSCs contributions shall be made fully refundable.

The IFC is actively working with UWaterloo’s Office of Advancement & Alumni Relations to promote external contributions to the EOI Fund.


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2.0 EOI Fund’s Financial Position

INTERNAL FUNDING COMMITTEE Financial Information Enterprise, Opportunity, Innovation (EOI) Fund ACTUALS BUDGET Fiscal Year 19-20 19-20

Endowment Principal - opening $696,834.82 $696,834.82 Expendable Carryforward from prior year $75,548.68 $75,548.68 Estimated Income for current year $24,389.22 $24,389.22 Net Funds Available $99,937.90 $99,937.90 Expenditures Science Society's OSSA Leadership Conference $700.00 $700.00 Conference on Sustainability In Engineering (CES) $10,000.00 $10,000.00 Science Society's SciChella Event $222.15 $1,500.00 Amphibian Conference (Hunter) Expenses $500.00 $500.00 iGEM Proposal $2,800.00 $2,800.00 UNICEF Proposal $3,924.00 $3,924.00 MEDA SheCycle Convention (Wouda et al) Expenses $1,500.00 BioTech & Bio-Engineering Conference $5,000.00 Sub-total of Expenditures $18,146.15 $25,924.00 Surplus/(Deficit) $81,791.75 $74,013.90

The EOI Fund is in a healthy financial position, however the last two years of increased advertisement and awareness have led to greater submission of applications to the fund. Funds awarded over the Spring term and September are nearly $26k, over the entire fiscal year it is projected that the fund would see approximately $78k in requests, but may only provide $74k in funding without dipping into principal. Further, given that funding pressure tends to increase during the Fall and Winter terms due to student projects being planned or executed, the actual funding levels requested from the Committee can reasonably be expected to exceed expectations.

Expendable Allowance set to Decrease In addition, 75.6% of net funds available this fiscal year from the EOI Endowment Fund are amounts carried forward unspent from prior years (when advertisement efforts were substantially lower). This means that there will be a future deficit in funding at current expense rates for projects that reasonably


95


can and should be funded by the Committee according to its mandate under the EOI Fund bylaws in Council procedures.

Proposed VSC Income The Proposed Voluntary Student Contribution would see $5.00 termly brought in from all PT and FT students, without pro rating, with approximately 59,000 FTEs annually, an expected income of ~$295,000 could be earmarked toward the Endowment’s Principal (75%) with the remaining 25% (~$74k) earmarked toward annual expenditure. Any amounts unspent at year’s end would be reinvested back in the Endowment Principal to increase the rate of return from investment of the principal by the Board of Governors’ Finance & Investment Committee.

Original Source of Funds In December of 2002, the Federation of Students created the Enterprise, Opportunity, and Innovation Fund to provide funding to student initiatives and reduce barriers to professional and academic development. The capital for the endowment fund (originally $500,000) came from the sale of Clarica shares the Federation held as part of the student supplementary health plan. At the time, the student health plan was controlled by the University and as such the University was entitled to all surpluses arising from the policy, however via contract with the Federation, was obligated to return any surpluses to the students.

The policy at the time was originally under Mutual Life, however the company demutualized leading to the creation of Clarica, and a surplus was paid out to the policyholders. This translated into significant funds being transferred to the University who in turn was obligated to transfer those funds to the students. The Federation accepted shared in the company Clarica in lieu of cash, and during the SunLife takeover bid of Clarica these shares were sold at a fairly high price.

In summary, this capital provided resources to create the EOI Endowment Fund by a contractual decision of the Board of Directors, however ownership and regulation of the fund's bylaws was placed in the hands of the Students' Council.

Note: currently all funds held in the EOI Fund are resulting from WUSA’s principal contribution to the fund or earnings from the principal investment.

3.0 Fund Mandate In accordance with Council procedure 16: EOI Fund Bylaws, the EOI Fund provides funding to student projects and initiatives that will further the personal development of UW students, improve the campus culture, or improve student life at the University of Waterloo.

The EOI fund is divided into the following three categories. The following percentages are recommendations at the discretion of the committee:


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a. Enterprise (25%) - This component of the fund will be used to remove the financial barrier of startup costs that may prevent the development of new initiatives. Preference will be given to submitted proposals that are designed to become self-funded projects once the period they have been funded for ends. The money granted would be used on a short-term basis and would not be used to fund the project/initiative for a period of time longer than 3 months.

b. Opportunity (25%) - This component of the fund will be dedicated to supporting students who wish to engage in conferences or development projects abroad.

c. Innovation (50%) - This component of the fund will be granted to initiatives that are not designed to continue, but that will provide a continuing benefit to campus, e.g. holding a conference. All proposals must offer a continuing benefit to UW students to be considered.

Inability to Complete Mandate Currently, the many of the fund’s expenses go toward Innovation expenses, within Opportunity being a secondary expense source. Very little in the way of Enterprise support exists, and with increasing awareness of the fund via advertisement and promotions, there is risk of inability to support these projects in whole or in part.

The Committee’s mandate to the EOI Fund should be attainable, but current funding expendable allowance is insufficient to support those ends.

4.0 Recommendation The Committee recommends Council approve the creation of a $5.00 levy for all PT and FT on-campus students as a voluntary student contribution to the EOI Fund to be apportioned in the following manner, insofar as possible and unless otherwise determined by Council:

• 75% invested to the principle allowance each fiscal year, • 25% retained for awarding of funds to applicants, in addition to any estimated income from the

principal;

Provided that the levy be voluntary/optional at point of payment.

The roll-out of this fee should be conditional on being considered a Voluntary Student Contribution to the Endowment, with associated issued tax receipts, unless otherwise expressly authorized by Council.

Attachment: Historical background from UW Finance


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BUDGET & APPROPRIATIONS COMMITTEE FY2020 Budget Report

Page | 2

Letter of Recommendation

Dear Students’ Council,

This is the second year the Committee has taken steps toward better justification and explanation of the

use of student fees and attempted to improve clarity in the budgeting process. We believe it is essential

to have transparent and open finances; in the past year, there have been major changes to the

management and implementation of financial controls – from costing out staffing for Commercial Units

to those units and the closure of the Bombshelter Pub, to optional fees in the era of Student Choice

Initiative (SCI). This report remains a major step in an on-going process to improve public accountability

and clarity WUSA’s budgeting.

As a Committee, we are responsible for developing, vetting, and reporting on the general operating

budget for all WUSA, which as of recently includes both those portions funded by student fees and

those which are not. We respect students’ right to know how their money is spent and what the future

has in store. This budget was built by prioritizing the provision of high quality service, financial

accountability, reaction to SCI, and planning for the future.

We feel confident that this report provides clarity on the use of student dollars and business

performance, highlighting the operating costs for the Corporation. As a committee, we have

unanimously approved the attached budget and recommend its passage by both Students’ Council and

the Board of Directors.

On behalf of the Budget & Appropriations Committee, yours sincerely,

________________________________________

John P. Hunte

Vice-Chairman

________________________________________

Seneca J. Velling

Chairman | Vice President, Operations & Finance


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Page | 3

Committee Approval of the Report On October 20th, 2019, the Committee voted to approve the report for review and acceptance of

Council, and final approval of the Board. The Committee opened Question & Answer period on the

report on the evening of October 21st, 2019. The following motion was adopted:

Be it resolved that the Budget & Appropriations Committee approves the prepared

FY2020 Budget Report, including all appendices and attachments, for recommendations

to the Students’ Council which shall be circulated by end of day on Monday the 21st of

October 2019;

Be it further resolved that the Committee permits the Office of the Vice President,

Operations & Finance, to make formatting and minor editorial amendments to the

report as may be required; and

Be it further resolved that the Committee opens the one (1) week Question & Answer

period on the report effective the time of circulation of the report to the Council &

Board mailing lists.

Moved by Velling, seconded by Gittens.

Roll-call vote:

o Member Plante – In favour

o Member Arnold – In favour

o Member Gittens – In favour

o Member Chang – In favour

o Vice-Chairman Hunte – In favour

o Chairman Velling – In favour

Motion Carries Unanimously.

Note: The Office of the Vice President, Operations & Finance, may provide additional minor

editorial and formatting amendments to this draft report prior to Council’s 3rd of November 2019

budget vote.

Update: Budget updated based on Question & Answer Period discussion which noticed a few

minor discrepancies in language and a table copying error that resulted in over reporting of the

Executive Compensation and under reporting of the Business Unit and Research & Development

lines in the strategic categorization of the Operations & Finance portfolio.


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Contents Letter of Recommendation .................................................................................................................2

Committee Approval of the Report .....................................................................................................3

Definitions .........................................................................................................................................7

Disclaimers and Notes to the Reader ................................................................................................ 10

General Operating Budget Summary ................................................................................................ 11

General Changes to the WUSA Fees ....................................................................................................... 13

Distribution of Revenues & Expenses ..................................................................................................... 14

Year-over-year Trends ........................................................................................................................ 16

Analysis ............................................................................................................................................... 17

Future Considerations ............................................................................................................................. 19

Governance Portfolio ....................................................................................................................... 22

Overview ................................................................................................................................................. 22

Strategic Categorization .......................................................................................................................... 22

Key Highlights ...................................................................................................................................... 23

Summary of the Portfolio ....................................................................................................................... 23

Distribution of Expenditures ............................................................................................................... 24

Changes in Budgeted Lines FY2019 to FY2020 ................................................................................... 24

Year-over-Year Growth ....................................................................................................................... 26


Student Life Portfolio ....................................................................................................................... 29

Overview ................................................................................................................................................. 29

Key Highlights .......................................................................................................................................... 29


Summary of Portfolio .............................................................................................................................. 31

Distribution of Gross Profit ................................................................................................................. 33

Distribution of Expenses ..................................................................................................................... 34



Future considerations ............................................................................................................................. 41

Education & Advocacy Portfolio ....................................................................................................... 43

Overview ................................................................................................................................................. 43



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Key Highlights .......................................................................................................................................... 45

Summary of the Portfolio ....................................................................................................................... 45

Summary of Expenditures ................................................................................................................... 46

Changes to Budgeted Lines FY2019 to FY2020 ................................................................................... 46


Future considerations ............................................................................................................................. 49

Operations & Finance Portfolio ........................................................................................................ 51

Overview ................................................................................................................................................. 51


Summary of Portfolio .............................................................................................................................. 55

Distribution of Revenues/Gross Profits .............................................................................................. 56

Distribution of Expenses ..................................................................................................................... 56

Summary of Operations & Facilities Departments ............................................................................. 57

Summary of Marketing & Communications Department ................................................................... 59


Year-over-Year Trends ........................................................................................................................ 68


Corporate Overview ......................................................................................................................... 71

Student Fees ........................................................................................................................................... 71

Transfers Out .......................................................................................................................................... 71

Notes on Transfers Out: Estimation of Legal Protection Service Premiums ....................................... 72

Corporate Salaries ................................................................................................................................... 73

Optional Fees Data ........................................................................................................................... 75

Remain Opted-in vs. Opt-out .................................................................................................................. 76

Dollar Normalized Opt-out Percentage .................................................................................................. 77

Opt-ins ..................................................................................................................................................... 78

Assessment of Trends in Financial Position ....................................................................................... 80

Liquidity Metrics ..................................................................................................................................... 80

Activity Metrics ....................................................................................................................................... 81

Cash Flows and General Operating Metrics ............................................................................................ 82

Impacts on Working Capital ................................................................................................................ 84

Background & Historical Context ........................................................................................................ 84

Comparators and Benchmarking ........................................................................................................ 85


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Corrective Measures ........................................................................................................................... 85

Status Report on Prior Committee Recommendations....................................................................... 86


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Definitions Waterloo Undergraduate Student Association

(WUSA) The Waterloo Undergraduate Student Association is the registered business operating name for the Federation of Students, University of Waterloo, which serves as the legal representative of all undergraduates at the University of Waterloo.

WUSA Fee(s) The suite of fees assessed to all undergraduates, prorated depending on stream and course load, which funds the benefit programs, services, Executives, advocacy, and governance of the Waterloo Undergraduate Student Association. Divided into three types of fees:

Administered Fund Fees – those that support specific programs or services and are restricted in use.

Operating Fees – those which fund the operating budget of the association and its subsidiary societies/affiliates.

Capital Fees – those fees that support capital maintenance, improvement, and expansion of facilities and capital resources (those valued in excess of $1000.00 which last greater than 3-5 years, for the purposes of WUSA). Note: there are currently no capital fee assessed to undergraduates for the student association, although there are planned and approved fees.

Constituency Societies Those recognized student governments and groups serving a dedicated constituency defined in the Bylaws or as otherwise determined by the Students’ Council. Societies are governed under the Federation-Societies Agreement, policies, and procedures of Council.

Advocacy The exercise of lobbying and stakeholder relations efforts within the University community, to the Region and Municipality of Waterloo, to the Provincial and Federal Governments, and to all other partners. It is also inclusive of student advocacy stances and policies passed by the Students’ Council.

Bottom Line The net earnings, profit, or surplus (loss) or the corporation or portfolio budget. The reference to "bottom" describes the relative location of the net income figure on the fiscal year budget. Also, referred to as "excess or deficiency in revenues over expenses".

Capital Costs Expenses that are fixed and incurred one-time, and often used to purchase property, equipment and construction.


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Fiscal Year The fiscal year aligns with that of the University, from 1 May 2019 to 30 April 20201. Currently it is fiscal 2020. Next period will be in fiscal 2021 on 1 May 2020.

Full-Time Equivalent (FTE) A unit that indicates the workload of students in a way that makes class loads comparable. One full-time student is one full-time equivalent, and three part-time students are one full-time equivalent.

Operating/Operational Costs Expenditure that are incurring continually and relate to the maintenance of an organization or service.

Student Development Activities related to or engagement of student employees, professional training, or leadership opportunities.

Services & Operations Student-run services — Services and programming focused on undergraduate students, that fill a gap in student experience or need, which are provided by WUSA and administered by Council. Commercial Operations/ Business Units — student-run business units, typically in hospitality and retail sectors, aimed at providing for accessible, student-centric markets, and affordable prices; they are administered by the Board of Directors pursuant to corporate policies passed by the Students’ Council.

Inflation Sustained increases in the general cost of goods and services. Inflation is measured as an annual percentage change. Inflation adjustments unless otherwise indicated are based on the Consumer Price Index (CPI) of Canada as measured by Statistics Canada in the prior calendar year.

Rate(s)/Derivative(s) Rate of change of a function or financial variable (slope).

Restricted Budget(s) Budgets restricted by the Board of Directors in the

interests of good business practice or due to privacy

considerations which are not made public. All

individual commercial operations have restricted

budget forecasts separate from the general public

operating budget. Bottom lines for all restricted

budgets are reported.

Value-for-Money Value-for-money is the achievement of a desired procurement outcome at the most suitable, but not necessarily the lowest, price based on balanced consideration of financial and nonfinancial factors. It is used to benchmark expenditure in the provision, use, and conclusion of services.

Pro rata (or prorated) Pro rata is the term used to describe a proportionate allocation. It is a method of assigning an amount to a fraction according to its share of the whole.

1 University of Waterloo Fiscal Year, https://uwaterloo.ca/finance/news/fiscal-year-end-april-30-2018


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Per capita Per capita refers to an average per fees-paying member.

General Meeting A General Meeting is a meeting of members of the corporation defined by the Corporations Act, R.S.O. 1990 (the “Act”) that provides general direction to and together with the Students’ Council receives financial information from the Board of Directors. The WUSA Annual General Meeting is responsible for appointing the auditor, modifying the dues paid by members, and approving changes to the bylaws of the corporation. Between General Meetings, the Students’ Council acts as a General Meeting of the Corporation, with only those powers allowed by the bylaws and policy, in accordance with §130 of the Act.

UW Staff Association (UWSA) Memorandum of Understanding (MoU)

The contract between the Staff Association and the Board of Governors of the University of Waterloo which governs increments to compensation, via the Staff Compensation Recommendations 2018-2020 from the Provost’s Advisory Committee on Staff Compensation (PAC-SC).


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Disclaimers and Notes to the Reader Within each portfolio, a strategic categorization is broken down. While this is to the best efforts

of the Committee aimed to be consistent between fiscal years, there may be discrepancies

between what items classify under which strategic heading. In addition, as portfolios vary in

what their strategic categories may be and because some have been modified from the prior

fiscal year, there are minor differences between years and between portfolios in what is

classified in what manner. For further information please contact the Chair & Vice Chair

([email protected]).

Business budgets are understood not to be caps on performance or unreasonably burdensome

on expense levels, but rather liberal projections of expenses and conservative estimations of

revenue. Deviation may and is often anticipated to occur in these budget forecasts.

For the most part, recommendations will be tasked to the appropriate managers and executives

for action upon adoption of the budget, however this does not imply that all recommendations

will necessarily be implemented. While the report’s bicameral adoption by Council and the

Board necessitates action, it is often the case that planning, implementation, and evaluation of

success take more than one fiscal year. Where priority exists in the recommendations, it is

noted or may be inferred by the appropriate manager or executive.

This report does not provide complete financial advisement to the Students’ Council and Board

of Directors. It should be viewed as a forward-looking review of the planned endeavours of the

organization and their associated funding. Together with the Audited Financial Statements this

budget report should provide a holistic view of the Corporation’s performance.

In accordance with the procedures of the Board of Directors and the prior suspension of

procedure by Council respecting budgeting, honoraria, and procedurally required allocations the

Office of the Vice President, Operations & Finance, maintains the authority to suspend or freeze

budgets as the may be required in the interests of the financial position of the Corporation.


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General Operating Budget Summary The University of Waterloo assesses the student fees on behalf of the Federation of Students, University

of Waterloo, operating as the Waterloo Undergraduate Student Association (WUSA) and transfers the

funds to WUSA for disbursement. The WUSA Fee refers to a suite of fees, including operating and

administered funds, which are governed by the undergraduate student body and paid by every

undergraduate. Part-time students pay 30% of the WUSA operating fees per the bylaws, but, where

applicable2, are charged the full administered fee level.

Until Fall 2019, the “Federation of Students Fee”, as it was formerly known, collectively provided for all

the operating fees, less those remitted to the recognized constituency societies. The “Federation of

Students Administered Fee”, as it was formerly known, collectively provided for all administered funds,

including the U-Pass program, the Health plan, the Dental plan, and the Student Refugee Program.

However, as a result of the Ministry of Training, Colleges and Universities3 (MTCU) Tuition Fee

Framework and Ancillary Fee Guidelines for Publicly Assisted Universities 2019-20 and 2020-21

(hereafter “Ancillary Fee Directive”) released on March 29, 2019, the University and student governing

body (Council) were required to more clearly communicate fees on the fee statement, including not

unreasonably bundling fees. In addition, the Ancillary Fee Directive mandated that all ancillary fees be

classified as compulsory or optional. The “Federation of Students Fee” which was compulsory has

become partially optional and has been broken into a suite of fees based on function. For any fees that

do not meet the compulsory “essential” ancillary fee requirements, each student must be given the

option to opt-out of the fee prior to paying their fee bill.

The suite of WUSA Fees is now broken down as follows:

Operating Fees (Optional)

o Events – $5.58 – Events run through WUSA, including Welcome Week and other

programming with social engagement as a focus.

o Community-building Services – $2.15 – WUSA runs twelve student-run services, seven of

which are considered essential. The remaining five services fall into the non-essential

category and are as follows: Bike Centre, International and Canadian Student Network,

Co-op Connection, Off-Campus Community, the and Sustainable Campus Initiative.

o Clubs Funding – $2.51 – WUSA operates the UWaterloo clubs system, including over

two-hundred fifty clubs providing a sense of community and belonging on campus.

Clubs range in purpose from athletics and recreational activities to spiritual or

career/professional development.

o University Advocacy – $3.40 – The WUSA Executives, Students’ Council, and various

commissioners (including the Academic Affairs and Co-op Affairs Commissioner) actively

engage as student representatives to the University, and advocate to the University in

order to enhance the undergraduate student experience and ensure student voices are

heard.

2 Application of administered fee(s) depends on the on-campus vs. online nature of a students’ course-load, the number of on-campus courses, and whether the student elected to self-enroll in certain administered programs where such an action is permitted. For further information see www.wusa.ca/fees 3 Since the issuance of this report, the Ministry of Training, Colleges, and Universities (MTCU) has been renamed the Ministry of Colleges and Universities (MCU). Please interpret these references to be one and the same.


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o Government Advocacy – $6.46 – The Federation of Student Executives, and various

commissioners (Municipal, Provincial, and Federal Affairs Commissioner) actively

engage as the voice of students to various government bodies and advocate to these

bodies to enhance the undergraduate student experience.

o Constituency Societies Fees – operating fees for the societies, approved in accordance

with the Bylaws and Policies of WUSA and those of the constituency Society, that fund

that societies’ operations.

Operating Fees (Compulsory)

o Corporations Act Compliance – $20.16 – In order for the student association to offer any

of the services the government has deemed as essential, the organization must be in

line with the Ontario Corporations Act, R.S.O. 1990. This includes audit, insurance and

legal costs, having a Board of Directors, running elections, and running general

meetings. This fee includes the costs for these items and the overhead associated with

their administration.

o Academic Support – $3.26 – The Academic Support fee ensures the Student Union can

continue to provide support for students who have questions, concerns, or seek

navigation support through the University’s policy process; including support for

academic grievances, discipline, petitions, and appeals. WUSA also serves to provide

student representation on academic disciplinary bodies for co-op and regular academic

matters. Municipal safety of students both on campus and in the municipality, is also a

priority, as are negotiations with GRT as an essential transit pass program.

o Health & Safety – $17.72 – WUSA run twelve student-run services, seven of which can

be deemed essential in accordance with the framework. Safety, equity, and peer-to-

peer student-run services provide peer-to-peer counselling to undergraduate students

in order to enhance their overall mental well-being among other benefits accessible to

all students.

o Student Life Centre Facilities – $2.22 – Operating and managing the Student Life Centre

is an essential building fee as defined by the protocol and essential to student space on

campus.

Administered Funds (Optional)

o Student Refugee Program – $1.03

o Legal Protection Service – Regular Stream, $9.56 in Fall, $19.14 in Winter; Co-op Stream,

$17.94 per academic term

o Orientation Fee – $110.53

Administered Funds (Compulsory)

o Health Plan – Regular Stream, $56.38 in Fall, $112.76 in Winter; Co-op Stream, $105.71

per academic term

o Dental Plan – Regular Stream, $61.85 in Fall, $123.70 in Winter; Co-op Stream, $115.98

per academic term

o GRT UPass Program – $101.07

For a full breakdown of fees, please see www.wusa.ca/fees. As noted in the report of the Committee at

the June meeting of Students’ Council, the Committee is confident that the University and WUSA has

taken appropriate measures to ensure compliance with the Ancillary Fee Directive. It should be noted


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that fees cannot be collected and then refunded, with some exceptions for administered insurance

programs (such as the Health & Dental Plans, which require proof-of-coverage for refund).

General Changes to the WUSA Fees The Bylaws and Policies of the Corporation require that fee changes be considered only in aggregate,

despite any breakdown of fees into categories or into non-compulsory fees. Therefore, the various

operating, society, and administered fund fees will be reported as outlined below.

For the purposes of reporting aggregate changes to the "Federation of Students’ Fee”, the suite of

WUSA Operating Fees (less the Societies levies) will be referred to as the “Operating Levy”. This

collective total is governed in accordance with the Policies and Bylaws of the Corporation. As shown in

the table below, the following fee adjustments to the Operating Levy were enacted:

CPI Increase – An Increase of $1.40 (~2.3%) to the Feds fee was also approved at the 2019

March General Meeting to account for inflation as calculated by the annual Consumer Price

Index (CPI) of Canada.

Increase for Required Staff Salary Increments – An increase of $0.24 (~0.3%) to adjust for the

difference between increases in the Consumer Price Index of Canada and those of the Full-Time

Staff Salaries required under agreement between the University and the UW Staff Association

was approved by the 2019 Winter General Meeting.

Government Advocacy Support Increase – An increase of $0.62 (~1.02%) to support increased

funding for Part-Time salaries, travel for Federal advocacy, professional development, and

funding for increased stakeholder engagement including VP Education town hall events with

students was approved by the 2019 Winter General Meeting.

Organizational Restructure-based Staff Salary Increase – An increase of $0.56 (~0.92%) to

accommodate changes due to new organizational restructure was approved by the Students’

Council at the June 2019 regular meeting.

Changes in the Operating Levy Effect on Fee Levels for 2019-2020

CPI Increase $1.40

Increases for Required Staff Salary Increments $0.24

Government Advocacy Support Increase $0.62

Organizational Restructure-based Staff Salary

Changes Increase

$0.56

Total Increase $2.82

Board of Governors Implemented Operating Levy

FY 2018-19 $60.64

FY 2019-20 $63.46

Increase $2.88

In the next table, the suite of changes to each WUSA Administered Fund Fees and Societies Fees have

been reported individually with background for their enactment:


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GRT U-Pass Program – An increase of $7.16 (effective Fall 2019) was required by the WUSA-GRT

UPass Agreement. This increase is based off of contractually arranged 4.99% increase each year

to the fee between 2015 and 2019, in addition to a 2.5% of premium administrative overhead

($2.47).

Health Plan Fee– An increase of $1.38 assessed per term for regular stream students; and $2.58

assessed per academic term for co-op stream students, inclusive of administrative overhead,

was approved by the Board of Directors.

Dental Plan Fee– An increase $16.85 per term for regular stream students and an increase from

$32.35 for co-op stream students including increases based on premiums and administrative

overhead, was approved by the Board of Directors.

Student Refugee Program (SRP) – An increase from $1.00 to $1.03 assessed per term for

administrative overhead was approved by the Board of Directors.

Legal Protection Service – A new fee resulting from a referendum in the Winter 2019 Term. The

Feds’ Board of Directors approved the following fee schedule: $9.56 assessed in Fall Term,

$19.14 assessed in Winter Term, $0.00 assessed in Spring Term for regular stream students,

based off of premiums and administrative overhead; and $17.94 assessed per academic term for

co-op stream students, based off of premiums and administrative overhead.

Engineering Society Fee – An increase of $0.35 to adjust for changes to the Consumer Price

Index of Canada was requested at the Engineering Society’s Joint General Meeting and accepted

by WUSA.

Mathematics Society Fee, re: MathNEWS – A decrease from $0.25 was requested at

MathNEWS/Society General Meeting and accepted by WUSA.

Science Society Fee– A previous accepted and scheduled increase in the Science Society Fee of

$3.00 went into effect.

Changes in Administered Funds Fees Effect on Fee Levels for 2019-2020

GRT U-Pass Program $7.16

Health Plan Fee $1.38

Dental Plan Fee $16.85

Student Refugee Program (SRP) $0.03

Legal Protection Service $9.56

Total Increase to Administered Funds $34.98

Changes in Operations Fees: Societies Effect on Fee Levels for 2019-2020

Engineering Society Fee $0.35

Mathematics Society Fee, re: MathNEWS $(0.25)

Science Society Fee $3.00 Note: All changes to fees entered effect for the Fall Term, at the beginning of the new academic year. All changes in tables are reported in terms

of regular stream students for consistency.

Distribution of Revenues & Expenses As shown in the Table of Gross Profit and Expenditure below, in the 2020 Fiscal Year, the Budget &

Appropriations Committee expects to see $3,781,777.74 in revenues generated originating

predominantly from member dues, administrative overheads on administered funds, and in small part

from interest accrued by the operating fund. For administrative overheads from administered funds,

these revenues are conservatively based off of premiums from the prior year.


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The planned expenditure levels on first impression appear to be dominated by the Operations & Finance

portfolio, however many of the expenses reported in this portfolio are administrative, central service

lines, or facilities related in nature, including staff salaries, IT, Marketing & Communications costs, and

the operation of the Student Life Centre, among other things. Less these central costs, the Student Life

portfolio accounts for 53% of expenses, the Education & Advocacy portfolio accounts for 31% of

expenses, and the Governance portfolio at 16% of expenses.


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Gross Profit (Loss) by Portfolio Budget 18/19 Actual 18/19 Budget 19/20

Governance Portfolio $- $- $2,740.00

Operations & Finance Portfolio $5,825,282.67 $5,530,912.96 $5,756,864.30

Student Life Portfolio $52,650.00 $81,985.91 $77,406.58

Education & Advocacy Portfolio $- $- $-

Subtotal $5,877,932.67 $5,612,898.87 $5,837,010.88

Expenses by Portfolio Budget 18/19 Actual 18/19 Budget 19/20

Governance Portfolio $88,738.68 $86,178.40 $105,625.59

Operations & Finance Portfolio $5,686,013.57 $5,328,342.95 $5,057,657.71

Student Life Portfolio $381,336.38 $361,854.86 $354,721.37

Education & Advocacy Portfolio $198,863.68 $198,882.26 $206,218.88

Subtotal $6,354,952.31 $5,975,258.47 $5,724,223.56

Total Excess (Deficiency) in Revenues

over Expenses $(477,019.64) $(362,359.60) $112,787.32

Year-over-year Trends The below chart – as plotted in the figure below entitled “Revenues Relative to Expenses per Fiscal Year”

– shows the year-over-year trends in the Corporation’s financial performance (actual) versus the

expected performance within that fiscal year (budget). The FY2019 figures and thereafter reflect

changes in the budgeting model for inclusion of commercial, operations, and facilities bottom lines,

which greatly impact the appearance of overall bottom-line for the Corporation relative to values prior

to FY2019. In addition, all inflation adjustments from the nominal values have been taking from the base

year 2013 for the budget summary.


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Nominal and Adjusted Revenues and Expenses FY 2013 to FY 2018

Fiscal Year Nominal Revenues Nominal Expenses Inflation Adjusted Revenues

Inflation Adjusted Expenses

2013-2014 $2,509,312.37 $(2,458,601.78) $2,788,577.84 $(2,732,223.59)

2014-2015 $2,663,985.70 $(2,562,235.05) $2,960,465.02 $(2,847,390.37)

2015-2016 $2,812,003.89 $(2,745,354.79) $3,124,956.39 $(3,050,889.81)

2016-2017 $3,053,282.75 $(2,975,492.05) $3,393,087.57 $(3,306,639.42)

2017-2018 $3,245,853.09 $(3,245,232.69) $3,607,089.38 $(3,606,399.93)

2018-2019* $5,877,932.67 $(6,354,952.31) $6,532,097.39 $(7,062,205.33)

2019-2020 $5,837,010.88 $(5,724,223.56) - -

Analysis The General Fund saw a loss of approximately $132,600 at the close of FY2019. This is $267,400 less

than the FY2018 loss, so significant improvements are underway, however there is considerable effort

that must occur. Expenses and revenues are reported in the table above, which can also be seen in the

reported graph. As noted above, the spike in revenues and expenses in FY2019 is due to a reporting

change with bottom-lines being made public in FY2020 and the FY2019 case being back-dated one year

for comparative utility. Due to limitations in confidentiality pre-FY2018, linear averaging is of minimal

value; to best determine the projections of financial position, a rolling average over two periods is

employed. The rolling average is based on a mean of the previous n data sets taken over a period n. The

benefit of this approach is a "smoothing" of the data and a predictive tool that minimizes the impacts of

sharp changes to better reflect underlying trends in the average or weighted average. As weighting that

exceeds simple constant modifiers for the difference in confidential and public operating budget values

is challenging, the rolling average suffers somewhat from reliance on old data (i.e. that prior to FY2018).

With that said, the tool is useful for seeing smoother trends in the data, which is obvious from the plot

provided.

Revenue is set to exceed expenses marginally, but the predicted rates of growth in expenses and

revenues are nearly the same (the trend lines are parallel). Without adjustment of revenues, minor

changes in expense levels or budget compliance failure could see expenses in excess of revenues.

Attention is required to these trends and efforts should be taken to return to healthy working capital

levels before resuming spending. If spending is needed to increase for service-levels, the corporation

should be ready to adjust fees to accommodate such growth or find new sorts of non-fees revenues.

Greater emphasis should be made on increasing the working capital to ensure WUSA is well placed to

maintain service levels while meeting obligations.

Accounting for UWSA-UW Staff Remuneration Increments

Largely due to the Board of Directors proposal to the Winter 2019 General Meeting to increment the

“Federation of Students’ Fee” in alignment with the UWSA MoU’s contractually obligated increases to

staff compensation, the tightening of the continued restriction of service levels to support service lines

was in part avoided in the FY2020 Operating Budget. This has allowed most service levels to remain

constant or improve rather than see decline that would otherwise have been due to contractually

obligated remuneration increases without the accompaniment of fee increases.

The organizational restructure approved by the Board of Directors is expected to have been under

compensated for with appropriate fee increases. As such, efficiencies will need to be found to


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accommodate this difference owing to regrading of various roles based on parity to the rest of the

campus; or the Board should expect to further adjust fees for staff remuneration, effective at Fall 2020

assessment. Further information as to staff salary costings is estimated based on Job Value and

Universal Salary Grades in the Corporate Overview section of this report.

Potential for Off-setting Fee Increases via Enrollment Trends

As depicted in the figure below4, the University is seeing regular but slowing increases in Full-Time

Enrollment. Further, per the 2018-2019 General Operating Budget from the Senate Finance Committee,

it should be noted that there is a stabilization of Part-Time enrollment5. While the rate of enrollment

slows, total actual enrollment continues to outperform targets, as such we project marginal increases in

revenues to generate some additional revenues, but this will not significantly offset the growing

expenses shown in the budget. Although this year revenues are anticipated to be in excess of expenses,

the organization should remain vigilant of expected fluctuation in optional fees toward equilibration in

the long-term and plan for sufficient reserves for healthy cash flows and maintenance of essential

service levels.

Disclaimer: As reported in the prior fiscal year enrollment data (as of February 2018), the accuracy of the undergraduate forecast over the

past decade has been monitored by Institutional Analysis & Planning (IAP) and shows an underestimation of enrolment by approximately

3.4%. If underestimation remains predictable, greater revenues can be expected on the order of $35,000-50,000. As depicted in the graph

above, adjusted 2018/19 enrolments are: 30976 Full-Time students, totaled from 12,252 (regular stream) and 18,724 (co-op steam), and

920 Part-Time students.

4 The graphs depict the UG Forecasted Full-Time Equivalents (FTEs) after an adjustment is applied. Source: Undergraduate Forecast, prepared by Institutional Analysis & Planning (IAP) for the 2019-2020 Operating Budget. 5 University of Waterloo Senate Finance Committee; 2018-2019 Operating Budget Supplementary Data, IAP monitor of UG FTE forecasting and real vs. projected enrollment, Page 91, University of Waterloo Board of Governors (Tuesday 3 April 2018).


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Future Considerations With regards to the general operating budget, it is the recommendation of Budget & Appropriations

Committee that:

The association reduces expenditures/redundancy in the budget to maintain current expense

levels without considerably incrementing the dues paid by members; or increase the dues paid

by members sufficiently to account for disparity in prior failures to adjust for trends in inflation-

adjusted derivatives of expenses and revenues.

Council explore pursuing a capital improvement program which will direct the Board to develop

an internally restricted capital maintenance, improvement, expansion fund supported by a

dedicated capital fee for student spaces. While the Committee is pleased to report on the

efficiencies of the student association, relative to the substantially lower fees for WUSA and its

constituency societies compared to other University and College associations, the association

currently lags well behind most all associations and educational institutions with support for

capital programs.

o Note: Many other associations have capital fees in excess of $100, however WUSA has

no capital maintenance, improvement, or expansion fee.

o Such a measure will relieve considerable burden on the operating budget for what

ought to be treated as investments in capital assets, rather than operating expenditures.

This will also reduce amortization lines considerably, leading to clearer and more

accountable budgeting. Currently a significant portion of cash flow concerns, identified

in the accompanying appendix on financial position of the Corporation, are due to

amortization in various departmental budgets and business budget forecasts.

o The development of a Capital Improvement Fund in will reduce larger impacts on

working capital that have been experienced in prior years due to necessary, although

expensive, projects such as replacement and upgrades to Point-of-Sale and Accounting

software, office renovations and capital maintenance, and build out of the service

kitchen.

o A model should include a five- to ten-year capital budget and associated improvement

plan.

Multi-year budget models should be investigated in this fiscal year which plan for three to five

years of budget. Budgets should be constructed in the form of a future looking plan, with

approval of annual changes (percent increments) built into the model, and approvals of

adjustments to fees for Consumer Price Index and obligated remuneration changes to be

planned for.

o This approach will allow for planning to implement long-term objectives, better define

special projects expenditures within departments through improved scoping, and allow

for senior management to adapt to changes in policy, political environment, and

executive campaign goals or Council prerogatives through discretionary expenditures in

a manner that better supports year-over-year changes.

o Note: In such a model, Council would receive regular reports and hold confirmation

votes for any shifts approved by the Board in excess of certain anticipated funding

amounts.


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Special Projects lines be minimized or eliminated and subsumed under the Internal Funding

Committee’s (IFC) Special Projects Fund, thereby increasing accountability to students and

increasing oversight for use of the lines.

o It is specifically recommended that Portfolios and Departments thereof bring their

special project or long-term initiative proposals to the IFC or another committee as

determined by Council.

o Funds that are referred to as “Special Projects” accounts that are primarily discretionary

in nature ought to be relabeled as discretionary allowances befitting their purpose, with

their scope of allowed expenditures narrowed, although sufficient to provide for

response to unforeseen expenses. Management and Executive require some capacity to

respond quickly as situations emerge.

o In turn, more effort should be made to direct parties seeking special projects funding to

the Internal Funding Committee including through increased marketing.

That the total Operating Levy be incremented for those staff salary increases that WUSA is

obligated to pay in accordance with the UWSA Memorandum of Understanding as implemented

by the Board of Governors.

o Council should pursue a Staff Remuneration Policy which determines when the Board

may issue such increase based on the UWSA MoU.

o In addition, Council should task the Executive with a review practices regarding PT and

Volunteer compensation to determine how and when increments to fee buckets for

such changes should be made. This may require greater oversight of the Board

approved Personnel & Volunteer Benefits Packages.

o Note: The total fee should be incremented as needed to compensate for any under-

estimations in the costs of the organizational restructuring determined by the Board of

Directors in May 2019.

The Students’ Council develop a policy on out-of-budget expenditure and budget amendment

via the Budget & Appropriations Committee. In addition, discretionary budget amendment

authority be conferred at various levels to management, executives, the Committee, and

ultimately the Board in a stratified model based on absolute dollar amount of amendment or

percent of total budget for that department, business unit, or function.

A fee opt-out rate fluctuation reserve be created by the end of the Fiscal Year at 5-10% of

premium to be held as part of a separate account, with respect to the General Operating Fund,

to offset future adverse fluctuations in fees assessment income based on termly changes in

campus population, enrollment rates, and opt-out rates.

o The fluctuation reserve would be aimed to be a buffer against fluctuation in experienced

payment rates for the various optional fees and to offer means for transferring surplus

from advantageous terms to periods of losses.

o The 5-10% overhead on fees should aim to be assessed to at least all optional fees, if not

all fees. Portions of the excesses of revenues over expenses from the General Operating

Budget should be closed-out into this fund on an interim basis to ensure sufficient

working capital exists to finance more significant fluctuations between terms.

o Note: this is intended to be a short-term alleviation measure for fluctuations

experienced over the course of each fiscal year, it is not intended to provide continuous


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or long-term financing of activities and services that students do not support as

evidenced by chronic opt-outs or statistically significant documented concerns.

Actual financials differ from Council-approved budgeted amounts. The reasoning for this is two-

fold, of which only one cause presents some concern:

o A cause is from the use credit cards points accrued through the payment of all major

purchases greater than $5000 by all departments, a direction required by Board

Procedure 17. While the use of points is exercised in an accountable manner, it could

afford increased transparency as it can lead to confusion in review of the audits relative

to the budget. Note that this cause is of only minimal concern to the Committee. It is

recommended that the Office of the Vice President, Operations & Finance, reflect on

how to better report expenses supported by points dollars in the budget, as such values

are reflected in the audited financial statements.

o The secondary reason for differences between actuals and originally-approved budget is

in budget shifts approved by the Executive Committee or Board of Directors (“altered

budget”). Given the Ancillary Fee Directive and accountability for budget compliance

and constraint imposed by the membership through Councils’ budget preparation

process, the Office of the Vice President, Operations & Finance, under the advisement

of the appointed Auditors of the Corporation, should determine what altered budget

allocations are permitted, whether authority for such alteration may be issued by

management or the relevant Executive, and when such matters must be taken before

the Committee or the Board.

Exempting the cases of business units, Budgets are intended to be both an

allocation of resources toward endeavors that are considered valuable and a

cap on expenditure based on priorities within departments determined by

students’ elected representatives. By issuing not insignificant shifts to budgets,

the expected amount of expenditure can demonstratively vary from what is

approved as a budget amendment.

While the Committee acknowledges, there is need at times for alternation of

the budget, this should be done in a more accountable manner and reported to

Council; otherwise, it should be considered to vitiate acceptance of the

prepared budget.

o Charge out of Executive Salary and other staffing costs to appropriate funds should be

noted in the next fiscal year’s budget or in the audited statements, where appropriate,

to ensure any other significant differences are clear to a student examining the budget.

To reconcile this, a comprehensive Budget & Appropriations Policy should be developed that

clearly delineates responsibilities in preparation, bicameral approval, and shifts. In addition, a

Financial Requests Outside of the Budget Process Policy should be developed that outlines

authorizations, the method by which such authorizations should be sought, and devolves

appropriate authority on this matter.

The Committee further recommends analysis of fee assessment and payment rates on an

ongoing basis, to determine optimal fee levels to maximize the capacity to deliver the highest

quality service levels, at the minimum cost to students.


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Governance Portfolio

Overview Role of the President — The President, who is the Chief Executive Officer of the Corporation, Presiding

Officer of the Students’ Council, and Vice Chair of the Board of Directors. The President represents

undergraduates to the University administration, Senate, and Board of Governors. The Office is

responsible for all aspects of student government, oversight of the Independent Elections & Referenda

Commission, and strategic leadership of the Executive. The President is responsible for leading the

planning of the corporation’s Long Range Plan as well as its execution, ensuring that each portfolio

aligns with the strategic vision of the organization. The President also provides leadership and

supervision to WUSA and is accountable to the Board of Directors and ultimately the Students’ Council.

Considerations in Budget Development — Based on actual expenses this year, ongoing reforms to

improve the governance process, electoral restructuring, and the development of the 2020-2025 Long

Range Plan, the budget of the President saw growth this fiscal year. Beyond the elimination of the

President’s cell phone allowance, no major changes require reporting. For further details, see key

highlights.

Strategic Categorization Below chart shows the strategic categorization for the Governance Portfolio. Raw data values may be

found in the underlying table.

Strategic Category Absolute Cost Percentage of Budget

Administration $14,390.00 13%

Executive Compensation $54,665.59 51%

Advocacy $10,050.00 9%


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Governance Operations $28,520.00 27%

Total Expenses $105,625.59 100%

Key Highlights For budgeting purposes, the Governance portfolio is comprised of four main sub-categories; the Office

of the President, Elections & Referenda, the Research and Policy Officer, and the Student Government

Department. A summary breakdown is presented below.

1. Office of the President — The Office of the President accounts for the majority of the portfolio’s

budget. Expenses of member dues under this section are those incurred directly by the

President themselves or on items they are directly responsible for overseeing.

2. Elections — The elections budget covers the costs of running elections and referenda for various

positions such as the Executive, Student Councilors, Student Senators, constituency Societies,

and any potential referenda which may arise. This budget is administered by the Independent

Commission for Elections & Referenda, in accordance with the Elections & Referenda

Procedures. Increases in this budget allocation reflect the real costs of the numerous by-

elections and referenda held in the last year.

3. Research and Policy Officer — The Research and Policy Officer (RPO) focuses on providing and

coordinating support to the Executive Committee and the Student Government Department for

the purposes of governance documents and activities, organizational history and

documentation, strategic and operational planning and data analysis of organization-wide

projects and initiatives. The RPO also supports the elections as an unaffiliated advisor in a

resource capacity. Proactive investment in research support has included budgeting for a

Research & Policy Analyst, in a Part-Time student-held role; this role will also support the

Education & Advocacy Portfolio.

4. Student Government — Student Government covers the costs of Student Council, the Board of

Directors, General Meetings, and other governance events or functions (e.g. support for

Councillor office hours). This year increases were made to the transition line items to reflect real

use for the Council transition and expected use for efficiencies in the Board’s transition

expenditures. This is in line with organizational goals focusing on minimizing turnover risks and

improving the transition of government. Additionally, “Ent/ Promo/ Meetings” lines have been

increased in this section of the budget to support committee meetings and planned

conferences.

Summary of the Portfolio Summary of Revenues/Gross Profit

Budget 18/19 Actual 18/19 Budget 19/20

President (30100) $- $- $-

Elections (31300) $- $- $-

Research and Policy Officer (31200) $- $- $-

Student Government (31100) $- $- $2,740.00

Subtotal $- $- $2,740.00

Summary of Expenses Budget 18/19 Actual 18/19 Budget 19/20

President (30100) $70,468.68 $67,122.08 $79,615.59


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Elections (31300) $6,300.00 $8,847.18 $6,800.00 Research and Policy Officer (31200) $870.00 $759.67 $2,220.00 Student Government (31100) $11,100.00 $9,449.47 $16,990.00

Subtotal $88,738.68 $86,178.40 $105,625.59

Excess (deficiency) in Revenue

over Expenses $(88,738.68) $(86,178.40) $(102,885.59)

The singular revenue source is an awarded fund from the Student Life Endowment Fund (SLEF) for

Governance, Elections, and Advocacy capital assets. It is a transfer out from the Student Government

Department to the Marketing & Communications Department for use.

Distribution of Expenditures

The President's budget, including administrative support Societies, for the Board of Directors and service

on committees of the University and WUSA, constitutes nearly 75% of the expenditures within the

Governance portfolio, the rest being predominantly Student Government related. The latter is an

irregular, but periodically (5 year) scheduled expense expected for the Long-Range Plan. In prior years,

and likely in future years, the Student Government Departmental budget will be significantly decreased

relative to Elections and the Presidency.

Changes in Budgeted Lines FY2019 to FY2020 Governance Portfolio Expense Changes Reason

Office of the President

Wages $1109.24 Adjustment for CPI increase.


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Benefits $106.48 Adjustment for CPI increase. PT Salaries $(3,000.00) For transparency in budgeting, the

costs of PT staff have been costed out to appropriate department budgets within the portfolio.

Cell Phone $(876.00) At the direction of the President and with no demonstration of reasonable need, the Committee discontinued the reimbursement of the President’s Cell Phone Allowance.

Photocopying $(50.00) Decreased reflective of increased digitization.

Ent/Promo/Meetings $(200.00) Decreased based on actual use.

Travel/Conf/Prof.Dev't $(100.00) Decreased based on expected use.

Long Range Planning $16,200.00 Increased based on periodic five-

year cost cycle for the plan. Special Projects $(2,500.00) Transferred $2000 to Director of

Campus Life for processing Events forms and Society event planning. Additional reduced based on desire to reform the Presidency as an effective leadership and governance role.

Transition Honoraria $(542.80) Restructured transition

honoraria so only incoming

executive receive honoraria. It

is the expectation of an

outgoing executive to transition

their successor.

Leadership/BoD Banquet $(1,000.00) Eliminated based on real use and greater investment in regular governance funding.

Student Government Department PT Salaries $3,000.00 Costed out from the President's

budget and RPO budget to the appropriate departmental budget for the following roles: Governance Events Coordinator and Recording Secretary & Clerk

Honoraria $2,250.00 Termly honoraria for the Chair

of the Board, Speaker, Secretary

of the Corporation in amounts

of $500, $500, and $250 termly.

Ent/Promo/Meetings $1,200.00 Increased to provide food for Council and Board meetings.

Travel/Conf/Professional Development $1,500.00 Required budget line to support Councillors/Directors commuting for Council & Board attendance.


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Special Projects $3,440.00 General Special Projects eliminated $(300.00), budgeting for Town Hall events created $1,000.00, Governance & Advocacy Signage (balanced with revenue line) totaling $2,740.00.

Board Transition $(500.00) Reduced based on expected costs and actual expenditures.

General Meetings (transfer-out) - General Meeting costs eliminated, transfers out to Special Events & Programming budget added.

Research & Policy Officer (RPO) Research & Policy Analyst $1,000.00 Created as commitment from

the Office of the President to support greater investment in informed research-driven policy for the Governance and Education & Advocacy portfolios.

Travel/Conf/Professional Development $250.00 Increased based on equity in professional development and conference opportunities for improvement within the organization.

Special Projects $100.00 Increased based on actual use in prior years.

Elections & Referenda PT Salaries $500.00 PT Salaries were costed out

from the Office of the President and the RPO’s budgets to the appropriate budgets to increase transparency. The increase provides for support for the following roles: Governance Events Coordinator for $1,000, Chief Returning Officer for $2000, Elections & Referenda Officers for $1,500. Increase based on justified over expenditure for elections and referenda of $1,894.92 within the prior fiscal year.

Year-over-Year Growth Year-over-year growth trends in the Governance Portfolio, as indexed for inflation, are shown in the

figure below. The accompanying table provides raw data values for this figure.

Fiscal Year Budget Actual CPI Adjusted Budget CPI Adjusted Actual


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2011 $ 94,773.42 $ 81,818.23 $ 111,096.87 $ 95,910.32

2012 $ 92,047.60 $ 86,484.58 $ 107,901.56 $ 101,380.39

2013 $ 104,387.11 $ 104,387.00 $ 122,366.38 $ 122,366.26

2014 $ 126,618.81 $ 122,009.93 $ 148,427.20 $ 143,024.50

2015 $ 111,020.97 $ 99,667.29 $ 130,142.84 $ 116,833.64

2016 $ 79,712.76 $ 54,095.00 $ 93,442.21 $ 63,412.14

2017 $ 76,909.35 $ 71,750.77 $ 90,155.95 $ 84,108.87

2018 $ 70,981.18 $ 68,167.39 $ 83,206.73 $ 79,908.31

2019 $ 70,568.68 $ 67,122.08 $ 82,723.19 $ 78,682.95

2020 $ 79,615.59 $ - $ 93,328.30 $ -

Future Considerations The Committee recommends the following actions be taken as it respects the Governance Portfolio:

That the costs of the Long-Range Plan budgeted for each year and carried forward in that

account if unspent over the five years of implementation rather than in periodic lump-sum. The

long-range plan costs should be understood to include the implementation, oversight, and

review costs for the plan once approved.

Continuation of the direction for investment in and support of governance, transition, and

training for Councillors and Directors. This investment pays off in the form of educated student

representatives and fiduciaries that more responsibly exercise their duties.

Efforts should be made preserve funding levels for General Meetings, Council, Elections and

Referenda as these costs are required by the Bylaws and actual demand varies depending on the

year. The last fiscal year saw a spike in costs due to unanticipated by-elections, meeting costs,

and some planned referenda.


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Student Life Portfolio

Overview Role of the Vice President, Student Life — The Vice President, Student Life (VPSL) is responsible for

promoting an environment where students can pursue personal growth within WUSA and the Waterloo

community. The VPSL is expressly responsible for supporting student participation in athletic, cultural,

and social activities as well as assisting student-initiated projects; oversight of the day-to-day operations

of all Federation of Students’ Clubs and Services. The Vice President works within the regulations and

procedures established by the Students’ Council for the administration of the portfolio.

Considerations in Budget Development

1. Students’ Choice Initiative – The SCI has significantly affected the Student Life portfolio due to

the high number of services within its scope which were deemed “optional”. Thus, budgeted

amounts are to be reflective of opt-out rates so that funds are spent appropriately, as required

by the Ancillary Fee Directive.

2. Reformed reporting by Departments and Services – this has allowed the Committee to more

effectively allocate funds to where they are most needed by each department and service.

3. Maintenance of service-levels wherever possible – departments and services were asked to

identify which areas are essential for their service-levels to be maintained, and which they

would prefer to receive cuts, if necessary. Reductions in expenditure were determined and

executed in a manner to minimize impact on service-levels wherever possible.

4. Clubs Surplus to support working capital – with the SCI as a significant contributing factor, the

committee has adopted the position of budgeting conservatively in order to maintain a healthy

financial position. In addition, a portion of the Clubs Surplus, which was historically (prior to

FY2017) regularly disbursed in the budget, was liquidated into the general operating budget for

the portfolio and for administrative costs associated with the build out of the clubs management

system.

Key Highlights 1. Volunteer Center – This was closed in Fall 2019 due to lack of use. This has resulted in a

significant reduction in its yearly budget as it only functioned for a portion of the 2019-2020

financial year. Its duties were redistributed within the portfolio of the Vice President, Student

Life.

2. Warrior Tribe – In Fall 2018, the Students’ Council discontinued the Warrior Tribe due to

continued low engagement rates, poor volunteer and executive participation or recruitment,

and understanding that Athletics & Recreation already serves a similar niche. This came at the

recommendation of the Vice President, Student Life.

3. RAISE – This is a new service which only functioned for a portion of the 2018-2019 financial year.

This has caused a perceived increase in allocated funds, while in fact some levels remained

constant in proportion to the length of time the service was active.

4. Equity Commissioner & Society Relations Commissioner – With the removal of the Society

Relations Commissioner and its duties being assumed under the portfolio of the President, and

Council’s direction to create an Equity Commission within the Student Life Portfolio, the Equity

Commissioner’s budget assumed a variation of the Society Relations Commissioner’s budget and


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hence there is no “zeroing” out of the Society Relations Commissioner’s line items, and no

“initiation” for those of the Equity Commissioner.

Strategic Categorization The strategic categorization of the Student Life Portfolio expenses is shown in the chart below. Raw data

represented in this chart can be found immediately thereunder. Best efforts have been made to classify

costs in accordance with the prior fiscal year’s classifications, so reasonable comparison can be drawn.


Administration 124,048.00 35%

Clubs 24,745.38 7%

Community & Outreach 81,750.00 23%

Executive Compensation 54,072.79 15%

Services 72,548.00 20%

Total Expenses 357,164.17 100%

Strategic Categorization of Expenses is based on primary functions of the portfolio. The Student Life

Portfolio consists of services and is community engagement focused and thus provision of services,

associated administrative costs, and community & outreach costs contribute most greatly to expenses.

The portfolio is also uniquely positioned to generate sales, in-kind, and other forms of revenues to

reduce its operation overhead.

Administration — Accounting for 35% of the VPSL budget. This section is made up largely of

honoraria for the significant number of volunteers who make it possible to run the twelve

Services under the portfolio as well as the overhead cost of these services.


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Community & Outreach — The promotion of services, community outreach, and events

accounts for 23% of the portfolio budget. This section comprises the cost of informing students

about the services provided by Feds and includes promoting awareness about the support

communities on Campus.

Clubs - The support of all undergraduate clubs and societies within the University accounts for

7% of the portfolio budget. This includes society relations and subsidizing some club expenses.

Executive Compensation — Salary, benefits, and transition honoraria for the VPSL accounts for

15% of the VPSL budget. This compensation package enables full time elected students to serve

as executives, leading the organization’s efforts in the provision of services, administration of

clubs and societies, and campus life improvements.

Services — The provision of student-run services accounts for 20% of the portfolio budget. This

section is comprised largely of the costs of a service provided to students. For example, this

would include the cost to train volunteers to run a service.

Summary of Portfolio

Department Summary Budget 18/19 Actual 18/19 Budget 19/20

Gross Income

VPSL (20100) $0.00 $0.00 $0.00

Orientation (32101) $0.00 $0.00 $0.00

Society Relations Commissioner (20200) $0.00 $0.00 $0.00

Equity Commissioner (20200) $0.00 $0.00 $0.00

Director of Campus Life (21100) $0.00 $0.00 $0.00

Services Manager (24100) $0.00 $0.00 $0.00

Clubs (23100) $1,400.00 $820.00 $24,206.58

Campus Response Team (24300) $1,250.00 $4,233.75 $800.00

Foodbank (24500) $500.00 $1,067.80 $500.00

Glow (24600) $400.00 $1,200.00 $400.00

SCI (24900) $3,000.00 $5,116.09 $1,000.00

Off-Campus Community (24800) $600.00 $13.88 $1,000.00

Women's Centre (25100) $0.00 $0.00 $0.00

Bike Centre (24200) $11,000.00 $15,953.13 $12,500.00

ICSN (24700) $2,000.00 $22,819.92 $2,000.00

Co-op Connection (24400) $7,500.00 $10,513.41 $9,000.00

Volunteer Centre (25000) $0.00 $0.00 $0.00

Mates (25300) $0.00 $0.00 $0.00

RAISE (25400) $0.00 $0.00 $3,000.00

Special Events (22000) $25,000.00 $20,247.93 $23,000.00

Subtotal $52,650.00 $81,985.91 $77,406.58

Expenses

VPSL (20100) $86,293.68 $75,980.34 $79,640.59

Orientation (32101) $1,490.00 $1,847.17 $1,490.00

Society Relations Commissioner (20200) $2,300.00 $0.00 $0.00


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Equity Commissioner (20200) $0.00 $0.00 $7,600.00

Director of Campus Life (21100) $6,300.00 $5,034.38 $8,600.00

Services Manager (24100) $45,075.00 $40,583.54 $47,271.40

Clubs (23100) $35,191.70 $29,312.37 $30,235.38

Campus Response Team (24300) $16,040.00 $18,758.85 $14,417.00

Foodbank (24500) $4,490.00 $4,481.88 $3,320.00

Glow (24600) $12,745.00 $10,191.46 $9,940.00

SCI (24900) $8,630.00 $8,159.71 $5,800.00

Off-Campus Community (24800) $9,170.00 $8,396.10 $9,155.00

Women's Centre (25100) $6,510.00 $5,238.96 $6,315.00

Bike Centre (24200) $8,200.00 $12,937.11 $11,670.00

ICSN (24700) $5,658.00 $25,878.05 $4,154.00

Co-op Connection (24400) $9,935.00 $8,714.63 $10,610.00

Volunteer Centre (25000) $3,628.00 $2,706.30 $1,428.00

Mates (25300) $4,880.00 $5,548.44 $6,520.00

RAISE (25400) $7,200.00 $3,787.36 $10,555.00

Special Events (22000) $107,600.00 $94,298.21 $86,000.00

Subtotal $381,336.38 $361,854.86 $354,721.37

Net Surplus (Expenses)

VPSL (20100) -$(86,293.68) -$(75,980.34) -$(79,640.59)

Orientation (32101) -$(1,490.00) -$(1,847.17) -$(1,490.00)

Society Relations Commissioner (20200) -$(2,300.00) $0.00 $0.00

Equity Commissioner (20200) $0.00 $0.00 -$(7,600.00)

Director of Campus Life (21100) -$(6,300.00) -$(5,034.38) -$(8,600.00)

Services Manager (24100) -$(45,075.00) -$(40,583.54) -$(47,271.40)

Clubs (23100) -$(33,791.70) -$(28,492.37) -$(6,028.80)

Campus Response Team (24300) -$(14,790.00) -$(14,525.10) -$(13,617.00)

Foodbank (24500) -$(3,990.00) -$(3,414.08) -$(2,820.00)

Glow (24600) -$(12,345.00) -$(8,991.46) -$(9,540.00)

SCI (24900) -$(5,630.00) -$(3,043.62) -$(4,800.00)

Off-Campus Community (24800) -$(8,570.00) -$(8,382.22) -$(8,155.00)

Women's Centre (25100) -$(6,510.00) -$(5,238.96) -$(6,315.00)

Bike Centre (24200) $2,800.00 $3,016.02 $830.00

ICSN (24700) -$(3,658.00) -$(3,058.13) -$(2,154.00)

Co-op Connection (24400) -$(2,435.00) $1,798.78 -$(1,610.00)

Volunteer Centre (25000) -$(3,628.00) -$(2,706.30) -$(1,428.00)

Mates (25300) -$(4,880.00) -$(5,548.44) -$(6,520.00)

RAISE (25400) -$(7,200.00) -$(3,787.36) -$(7,555.00)

Special Events (22000) -$(82,600.00) -$(74,050.28) -$(63,000.00)

Excess (deficiency) of Revenues over Expenses

-$(328,686.38) -$(279,868.95) -$(277,314.79)


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Overall, the Student Life portfolio saw a 0.913% reduction in bottom-line relative to actuals (note this is

a 15.63% relative to budget). Of this, the portions of the optional fee represent the vast majority of

reductions; with additional cost control measures instituted for compulsory units until working capital

was sufficient across the organization. A similar exercise was taken with all budget areas. Efforts were

made to minimize impact on key service offerings and essential service-levels that students have come

to expect.

Distribution of Gross Profit

Revenues are mostly generated through ticketing, sales, predicted event-based opt-ins, and liquidating a

portion of the retained clubs surplus that had gone unclaimed for many years. The primary income areas

are from the liquidation of this clubs surplus, the income from the special events ticketing, and sales at

the Bike Centre. In addition, sponsorship and support from various University departments or in-kind

donations makes a considerable portion of non-primary sources of funding.


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Distribution of Expenses

Expenses are distributed across a number of student life cost centres within the portfolio.

Predominantly costs are administrative for the Vice President, Student Life, or are otherwise related to

support for services and clubs, or the planning and execution of special events.

Changes in Budgeted Lines FY2019 to FY2020

Student Life Portfolio Expense Changes Reason

20100 - Vice President Student Life

Wages $1,109.23 Adjustment for CPI increase.

Benefits $106.48 Adjustment for CPI increase.

P/T Wages $(5,500.00)

Unbundled and costed out to appropriate Student Life budgets (e.g. Equity Commissioner)

Volunteer Recognition $(2,000.00) Costed out to appropriate units, and reduced due to budget constraints.

Cell Phone $(876.00)

Eliminated. Executive cell phone compensation based on needs basis for being on call while out of office or need for travel, per Board procedure.

Special Projects $(4,250.00)

Satellite campus/College relations $(2,500.00) Moved to President’s portfolio due to bylaw changes.

Community Events $700.00 Increased to allow focus on community engagement.


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New Student Transition $800.00 Increased to support member and student transition.

Society Relations $(950.00) Moved to President’s portfolio due to bylaw changes.

Leadership Awards $3,000.00 Moved from President’s portfolio due to change in consolidation of committees.

Transition Honorium $(542.80)

Restructured transition honoraria so only incoming executive receive honoraria. It is the expectation of an outgoing executive to transition their successor.

20200 - Equity Commissioner (New role as of 2019 - used to be Society Relations Commissioner)

Special Projects $(200.00)

Based on job duties, the SRC formerly had engagement on every satellite campus and all societies, the Equity Commissioner has different focus and responsibilities.

PT Wages $5,500.00 Moved in from VP Student Life budget under unbundling of costs for transparency.

21100 - Director of Campus Life

Salaries P/T $2,000.00 Support for risk assessment and event form review support for Societies, Clubs, and WUSA.

Photocopying $(50.00) Reduced based on actual use.

Ent/Promo/Meeting $(150.00) Reduced based on actual use.

Travel/Conf/Prof.Dev't $500.00 Increased for Professional Development requests within the department.

24100 - Services Manager

EOT Service Coord Honoraria $(2,000.00) Reduced based on actual use and dissolution of two services within the last year.

Volunteer Appreciation $(720.00) Reduced based on actual use and dissolution of two services within the last year.

Volunteer Training $750.00 Increased to support increased training for service volunteers.

Ent/Promo/Meetings $(610.00) Decreased based on actual use and need.

PT Wages $4,776.40

No per mensum increase. Services Assistant role created through General Meeting two years ago came into effect part way through FY2019, hence costs are increased reflective of a full year’s worth of expenses planned to be incurred.

23100 - Clubs

Salaries P/T $(2,316.70)

Change in wages or hours paid out based on financial constraints and because new clubs manager hired.

Volunteer Appreciation $150.00

Increased to recognize Clubs Support Team commensurate with other critical support volunteers.

Ent/Promo/Meeting $(200.00) Reduced based on actual use.


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Staff Relations $(20.00) Reduced based on staffing changes.

Amortization $(765.00) Reduced to conclusion of amortization.


Reduced based on financial constraints from optional fees and need. Note: the Special Projects Fund exists.

Clubs Allotment $(1,250.00)

Floating point levels based on actual IAC approved clubs list. Per club allocations will likely not change except as a financial control if needed.

Clubs Awards $(1,150.00) Reduced based on actual use and new strategy.

BBQ Supplies $(150.00)

Reduced based on use rates in Spring being lower than typical and lack of use during Winter season.

Clubs Surplus (Deficit) $3,695.38 Based on close out of old club accounts.

24300 - Campus Response Team

Volunteer Appreciation $(680.00) Based on overall budgeting direction.

Photocopying $(50.00) Based on overall budgeting direction.

General Office $500.00 Increase for radio license renewal fee.

Taxi Fund $(250.00) Closure of Bomber contributed to elimination of overnight shifts.

Ent/Promo/Meetings $(340.00) Reallocated to certifications.

Subscriptions $100.00 1st year of membership of ACERT - $100/yr

Special Projects $(600.00) Reallocated to general office for radio purchase

Certifications $1,115.00 More volunteers expected to become certified.

Casualty Simulation $(400.00) Reallocated to certifications.

Discretionary Expenses $(280.00) Based on overall budgeting direction.

Volunteer Training $(738.00) Shortened training schedule.

24500 - Foodbank


Increased to better support volunteers supporting this service, particularly with forthcoming service-level changes.

Photocopying $(25.00) Based on overall budgeting direction.

General Office/Supplies $(150.00) Based on overall budgeting direction.

Auto $(100.00) Based on overall budgeting direction.

Memberships $(50.00) Foodbank WR reduced membership fee.

Special Projects $(1,025.00) Based on overall budgeting direction.

Trick or Eat $(200.00) Based on overall budgeting direction.

24600 - Glow


Ent/Promo/Meetings $(25.00) Based on overall budgeting direction.

Conferences $(50.00) Based on overall budgeting direction.

Special Projects $700.00 Supporting professional performers in “Drag me to” events.


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Pride Festivals $(1,100.00) Capital items purchased and overestimated in previous year.

Literature $(30.00) Based on overall budgeting direction.

Special Events $(2,000.00) Lower estimated costs in FY19/20

Volunteer Training $(100.00) Reduced number of volunteers require training

24900 - Sustainable Campus Initiative

Photocopying $(20.00) Reduced based on financial constraints due to optional fees and actual use.

General Office $(350.00) Reduced based on financial constraints due to optional fees and actual use.

Ent/Promo/Meetings $(100.00) Reduced based on financial constraints due to optional fees.

Special Projects $(700.00) Reduced based on financial constraints due to optional fees.

Earth Hour $(300.00) Reduced based on financial constraints due to optional fees.

Volunteer training $(50.00) Reduced based on financial constraints due to optional fees.

Recycle Week $(450.00) Reduced based on financial constraints due to optional fees.

EcoLoo $(400.00) Reduced based on financial constraints due to optional fees.

Anti-Idling Campaign $(200.00) Reduced based on financial constraints due to optional fees.

Amortization $(260.00) Reduced based on financial constraints due to optional fees.

24800 - Off-Campus Community

Volunteer Appreciation $20.00 Increased based on volunteer participation levels.

Telephone $315.00 New line. Phone for peer support and panic button instillation.

Don Events $(200.00) Reduced based on financial constraints due to optional fees.


25100 - Women's Centre

Photocopying $5.00 Immaterial

Special Projects $(150.00) Based on overall budgeting direction.

Literature $(50.00) Based on overall budgeting direction.

Love Your Body Week (Fall) $50.00 Required to successfully run event

Volunteer Training $50.00 Volunteers require training to run events

Poetry Slam $(100.00) Event not bring run in Spring due to Bomber closure.

24200 - Bike Centre


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Services that bring in revenue in excess of expenses were authorized to pay honoraria to their Executives.

General Office/Supplies $(20.00) Reduced based on financial constraints due to optional fees.

Equipment Costs $(500.00) Reduced based on financial constraints due to optional fees.

Parts $(1,000.00)

Based on real use and need in current fiscal year. Should be re-evaluated in future years based on need.

Mechanic Honorarium $1,000.00


Volunteer Mng. Honorarium $500.00


Legal Theft Mng. Honorarium $500.00


Social Media Honorarium $400.00


Rental Mng. Honorarium $500.00


Bike Lockers $1,850.00 Investment in new Bike Locker program across campus.

24700 - International and Canadian Student Network

Volunteer Appreciation $(270.00) Reduced based on financial constraints due to optional fees.


Special Events $(844.00) Reduced based on actual use.

24400 - Co-op Connection


General Office/Supplies $(25.00) Reduced based on financial constraints due to optional fees.


Events $1,000.00

Increased based on Council resolution for increased support for co-op students when on work terms.

25000 - Volunteer Centre

General Office/Supplies $(100.00) Service dissolved. Operations wound down over Spring term.


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Volunteer Appreciation $(380.00) Service dissolved. Operations wound down over Spring term.

Photocopying $(20.00) Service dissolved. Operations wound down over Spring term.

Ent/Promo/Meetings $(95.00) Service dissolved. Operations wound down over Spring term.

Volunteer Training $(125.00) Service dissolved. Operations wound down over Spring term.

Annual Fees $(500.00) Service dissolved. Operations wound down over Spring term.

Events $(980.00) Service dissolved. Operations wound down over Spring term.

25300 - Mates

Volunteer Appreciation $(10.00) Based on overall budgeting direction.

Telephone $350.00 New line.

Volunteer Training $300.00 Volunteers require training to be beneficial peer-peer supports.

Special Projects / Events $1,000.00 Expansion of events expected.

RAISE (25400)



Based on volunteer staffing levels and full year of operation. In FY2019, RAISE only operated a portion of the year, in FY2020 the service budgeted for a full year of operations.

Ent/Promo/Meetings $400.00

Based on volunteer staffing levels and full year of operation. In FY2019, RAISE only operated a portion of the year, in FY2020 the service budgeted for a full year of operations.

Xchanges Conference $2,800.00

Support for successful conference program that engaged hundreds of students. The service is expected to bring in revenues from applications to endowments to help offset conference costs.

Special Projects $(100.00) Based on overall budgeting direction.

Events $(1,400.00) Based on overall budgeting direction.

Vibes Nights $880.00 New line.

22000 - Special Events/Programming

Photocopying $(75.00) Reduced based on actual use.

General Supplies $(50.00) Reduced based on actual use.

Ent/Promo/Meetings $(100.00) Reduced based on lack of need.

COCA Membership $50.00 Floating point value tied to membership cost. Costs of membership increased.


Reduced based on financial constraints due to optional fees. Note: the Special Projects Fund exists.


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General Meetings $2,000.00

Transfers in from the Student Government budget under the President’s Portfolio. Inclusion in Events & Programming allows for centralized planning and budgeting.

Fall Welcome Week $(8,000.00)

Reduced based on financial constraints due to optional fees. Department expected to seek increased sponsorship levels, cost-sharing approaches, or ticketing income/opting-in to fees to allow for greater expenditure.

Winter Welcome Week $(8,000.00)

Reduced based on financial constraints due to optional fees. Department expected to seek increased sponsorship levels, cost-sharing approaches, or ticketing income/opting-in to fees to allow for greater expenditure.

Cultural Caravan $500.00 Increased based on growth expected and consolidation with lines from the Clubs budget.

Year-over-Year Growth

Fiscal Year Budget Actual Inflation-Adjusted Budget

Inflation-Adjusted Actual

2011 $262,074.37 $276,369.30 $305,600.71 $322,269.80 2012 $340,467.11 $291,166.71 $389,856.76 $333,404.63 2013 $290,029.77 $259,990.14 $322,685.33 $289,263.43 2014 $279,587.98 $289,767.37 $306,467.02 $317,625.04 2015 $300,491.15 $305,508.85 $326,429.31 $331,880.14 2016 $315,387.67 $281,178.30 $336,044.05 $299,594.13


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2017 $326,229.75 $296,231.69 $343,752.36 $312,143.03 2018 $357,546.98 $302,160.84 $371,470.15 $313,927.23 2019 $328,686.38 $279,868.95 $336,248.18 $286,307.65 2020 $256,851.02 $ - $256,851.02 $ -

Future considerations As with other portfolios, the VPSL portfolio will continue to develop with reference to the Students’

Choice Initiative and opt-out rates. As a significant portion of the Student Life Portfolio is considered

optional, it is important to note that the requirement set by the Committee based upon the Ancillary

Fees Directive is that if students opt out of a fee, then expenses in that area cannot exceed the fees

collected unless other sources of revenue can support those costs (e.g. ticketing, sales, or opt-ins).

The Committee recommends against further cuts to the Student Life portfolio in future years, if

financially prudent, particularly due to the associated impact on service levels. Current scaling is

unsustainable, unique approaches to revenue generation should be reviewed, but generally greater

support for units that impact the most students should be entertained (e.g. clubs systems, services

based on usage, need, and impact, etc). Given much of the department operates on optional fees, the

magnitudes of those fees should be optimized to maximize revenue, so as to better support demanded

service levels.

Increased support for Clubs, both the Clubs System and the Clubs Allotment, should be implemented. A

review of funding models for clubs should be undertaken which examines a minimum allotment and

then larger pro rata allocations tied to usage and participation.

The Committee further recommends the following:

The continuation of the FY2019 Budget Report’s recommendation that usage data of services be

provided, from metrics established for total use as well as benefit per use, in the form of an

analytics report from the Campus Life Advisory Committee or Office of the Vice President,

Student Life, to inform budgeting and best comply with Corporate Policy 51, Value-for-Money.

Conducting an internal review of Part-Time wages, honoraria, and volunteer appreciation as

compensation or appreciation mechanisms, respectively. Barring this year with changes due to

the Student Choice Initiative (SCI), these expenses have traditionally increased with time. A

holistic review of all such compensation and appreciation mechanisms based on greatest social

good or remuneration provided with an acceptable level of financial impact should be

undertaken.

o Given the urgency of adapting to SCI, this review should be completed and changes

necessary, including any fee increments required to support the outcome of such a

review, be implemented during the Winter 2020 Term.

o In addition, it is recommended that a more cogent governing environment exist for

volunteer and employment compensation, honoraria, benefits, and appreciation that

likely should be laid out in Policy, with procedural implementation as appropriate,

rather than what is a currently conflicting minefield of procedure from the Board and

Council as well as various orders historical from General Meetings.

The Campus Life Department should perform a strategic review exercise to plan the future of

the department’s operating mechanisms for both compulsory and optional fee buckets, and the


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associated service lines for those areas. Such a review should include assessment of ticketing

and fee verification methods, with specific regard to events and service access, pricing models,

resource access, and similar. As a corollary, the Committee recommends the Office of the Vice

President, Operations & Finance, be directed to ensure any centralized member management

and fee verification system include a centralized ticketing platform for WUSA and the Societies.

A mass survey of students should be conducted to determine interests, in order to gauge what

events, resourcing needs, and services students make use of, see value in, and seek. This will

allow for better analysis of success in outcomes for student experience efforts as well as

targeted direction for where students seek additional supports. In addition, marketing support

to increase awareness of services outside of the SLC should occur.

The Student Life portfolio should invest greater resources, staff time, and funds to actively seek

sponsorships, strategic partnerships, and in-kind donations with the expectation of reduced

funding in the future due to opt-outs. This should be undertaken for both compulsory and

optional areas across the organization, but with particular haste for service lines affected by

optional fees. A plan should put forward for seeking sponsorship before budgets are approved in

the future.

Campus Life Department specific (i.e. per service or division) contingency plans should be

developed and presented to the Vice Presidents Student Life and Operations & Finance as

fallback options in the event that a review by the MTCU – or reclassification by the University –

determines that those services or divisions be considered optional rather than compulsory. Such

planning should include transition methodology, scale-back of expenditures, and alternative

revenue considerations.

Explore opportunities for developing and marketing supports for students on work-terms away

from campus (or outside of the Region of Waterloo) is encouraged. It is recommended that

increasing support for co-operative education students while on work-term may increase

perceived value of service offerings and minimize reductions or fluctuations in opt-out rates.


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Education & Advocacy Portfolio

Overview Role of the Vice President, Education — The Vice President, Education (VPEd) is responsible for

advocating on behalf of undergraduate students to the University of Waterloo, the municipality and

region of Waterloo, the provincial government, and the federal government, on all matters related to

postsecondary education. They also further student advocacy objectives and represent Waterloo to any

External Political Organization of which WUSA is a member. Through the support of Commissioners, the

portfolio also provides assistance to students facing difficulties in their interactions with the University

or any level of government, or otherwise seeking assistance of a general academic nature.

Considerations in the Development of Budget — In the development of a budget for the Education &

Advocacy Portfolio the Committee aimed to ensure the VP Education and their staff were able to

maintain and expand relationship development to promote undergraduate student welfare. A key factor

influencing the distributions of funds to education and advocacy efforts was optional fees in advocacy,

the change in leadership of the Ontario Undergraduate Student Alliance (OUSA), recommendations for

the earmarking of targeted fee increases approved by the Winter 2019 General Meeting, the addition of

a new commission, and the ongoing work on various Commissions. More specifically, the following items

are noteworthy to the reader:

1. Membership in the OUSA — The Alliance, a post-secondary education provincial lobbying

organization, excises a fixed inflation-adjusted per capita fee. The fee is not prorated for part-

time undergraduates enrolled.

2. Education Commissioners — Commissioners serve as the primary advocacy support unit in the

VP Education’s portfolio and operate as proxies on more niche or specific priorities. This budget

continues support from the prior fiscal year but expands resources for the Centre for Academic

Policy Support (CAPS) and the newly re-established Government Affairs Commission for

Provincial and Federal Advocacy. These roles augment the Education portfolio and facilitate the

initiatives led by the VP Education, allowing flexibility through effective delegation of

responsibility.

3. Optional Fees — With the majority of the VP Education’s budget being considered optional

under the MTCU’s Ancillary Fee Directive, most supports were met requirements for a 30%

budget reduction, after accounting for recommended fee increases approved by the Winter

2019 General Meeting. Services exempted on the basis of compulsory status, which were still

expected to find efficiencies in budget, included academic policy support, university

representation by the VP Education and relevant commissioners, and portions of the Municipal

Affairs Commission as it pertains to municipal safety of students and transit negotiations.

Strategic Categorization The below chart demonstrates the strategic categorization of the Education & Advocacy portfolio’s

expenditure. Raw data for the same can be found immediately thereunder. Classification has remained

consistent relative to FY2019.


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Administration $34,977.26 17%

Student Development $5,670.83 3%

Stakeholder Relations $9,170.83 4%

Executive Compensation $54,615.59 27%

Advocacy $102,184.37 49%

Total Expenses $206,618.88 100%

Strategic Categorization is based on primary functions of the portfolio. The Education & Advocacy

Portfolio is advocacy focused and thus advocacy, associated stakeholder relations costs, and

administrative costs for the portfolio dominate.

Administration — 17% of the portfolio budget is spent on general administration, an increase of

3% from the prior year, which is largely owed to the increase in PT staff under the Vice President

and associated management costs. This includes portions of Part-Time salary for Commissioners,

photocopying, telephone/cell phone plans, general office supplies, meetings, and costs of

governance and oversight functionality by the Students’ Council committees (Education

Advisory Council, External Advocacy Organization Review Sub-committee, and Co-operative

Education Student Council).

Student Development — 3% of the portfolio budget is spent on student development for

Commissioners, Staff, and the Vice President. This covers portions of conferences, professional

development opportunities, travel, and special events opportunities.


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Stakeholder Relations — Stakeholder relationship is up from the prior fiscal year, and accounts

for 4% of the portfolio expenditures. Stakeholder relations fosters and supports relationships

with students, University administration, and external groups. The VP Education and the

Stakeholder Relations Officer negotiate and advocate on behalf of students with University and

external stakeholders to advance student interests. This includes special events sponsorship

such as “Politics at the Pub” where students directly engaged with electoral candidates in the

elections.

Executive Compensation — salary, benefits, and transition honoraria for the VP Education

accounts for 27% of the portfolio budget. This compensation package enables Full-Time elected

students to serve as executives, leading the organization’s efforts in achieving post-secondary

education priorities set by students.

Advocacy — down from the prior fiscal year’s budget, largely due to optional fees impacting the

larger costs in this category (i.e. OUSA memberships), the Advocacy portion of the portfolio

budget accounts for 49% of expenditures. Advocacy provides for achieving student goals set by

the Students’ Council in the post-secondary education sector. Advocacy is achieved by using

channels established through stakeholder relations and membership in provincial and federal

lobbying organizations. Provincial advocacy is led through OUSA and federal advocacy efforts

are channeled through UCRU. The later has no associated costs other than travel and

administration.

Key Highlights 1. Fee Increase — The 2019 Winter General Meeting approved a fee increase of $0.62 per

assessment beginning in September of 2019 to support increased funding in the Vice President,

Education portfolio including Part-Time salaries, travel for federal advocacy, professional

development, and increased stakeholder engagement including VP Education town halls.

2. Separation of Commissioner Salary Costs — In the interest of greater transparency and accuracy

the part-time salary costs of Commissioners have been separated out by portfolio into the

relevant departments, as was done for all PT staff units within the organization.

Summary of the Portfolio Summary of Revenues Budget 18/19 Actual 18/19 Budget 19/20

Total $- $- $-


VP Education (40100) $86,353.68 $89,841.17 $63,171.74

SRO (41500) $1,475.00 $1,753.12 $1,530.00

OUSA (41400) $109,335.00 $107,239.82 $81,751.59

Academic Affairs (41100) $1,050.00 $168.15 $35,759.33

Government Affairs (41200) $- $- $11,903.11

Local Affairs (41300) $650.00 -$120.00 $12,103.11

Total $198,863.68 $198,882.26 $206,218.88

Excess (deficiency) of Revenues over Expenses

$(198,863.68) $(198,882.26) $(206,218.88)


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Summary of Expenditures

Changes to Budgeted Lines FY2019 to FY2020 Education & Advocacy Portfolio Expense Changes Reason

Office of the Vice President Education

Wages $1109.24 Adjustment for CPI increase. Benefits $106.48 Adjustment for CPI increase. PT Salaries $(25,675.00) For transparency in budgeting, the

costs of PT staff have been costed out to appropriate department budgets within the portfolio.

Cell Phone $20.15 Increase in cell & data plan support. The VP Education is on call and accessible during stakeholder relations meetings off campus, advocacy in Ottawa or Toronto.


Ent/Promo/Meetings $(100.00) Decreased based on actual use.

Transition Honoraria $(542.80) Restructured transition honoraria so only incoming executive receive honoraria. It is the expectation of an outgoing executive to transition their successor.

Travel/Conf/Professional Development $2000.00 The Vice President, Education, currently serves as an OUSA


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Executive for this fiscal year. This increase aims to support advocacy efforts and OUSA engagement.

Academic Affairs Commission PT Salaries $33,759.33 PT Salaries for each appropriate

staff member costed out to departmental/commission budgets. Represents salary caps of up to $11,253.11 for the following roles: Academic Affairs Commissioner, Co-operative & Experiential Affairs Commissioner, and Centre for Academic Policy Support Coordinator.

Discretionary Expenses $500.00 Increased based on earmarked increases at the Winter 2019 General Meeting to support advocacy.

WUSA Staff Awards $300.00 Roll-out of new program for recognition of staff that go above and beyond. Award issued by WUSA on behalf of undergraduates. Modelled after WUSA Teaching Awards.

WUSA Teaching Awards $150.00 Teaching Awards/Faculty appreciation to highlight successes and thanks to faculty that go above and beyond and deserve recognition by the student association.

Government Affairs Commission (NEW)

PT Salaries $11,253.11 New Commission. PT Salaries for each appropriate staff member costed out to departmental / commission budgets. Represents salary caps of up to $11,253.11 for the Provincial & Federal Affairs Commissioner. Role funded by earmarked fee approved at Winter 2019 General Meeting.

Travel/Conf/Professional Development $200.00 New budget line for Commission, funded by earmarked fee approved at Winter 2019 General Meeting.


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Special Projects/Events $300.00 Focused on Federal Elections Initiatives and governance/advocacy promotional events. New budget line is funded by earmarked fee approved at Winter 2019 General Meeting.

Entertaiment/Promo/Meetings $150.00 New budget line for Commission, funded by earmarked fee approved at Winter 2019 General Meeting.

Local Affairs

PT Salaries $11,253.11 PT Salaries for each appropriate staff member costed out to departmental / commission budgets. Represents salary caps of up to $11,253.11 for the Municipal Affairs Commissioner.

Travel/Conf/Professional Development $200.00 Aimed at increasing participation in city and regional committees and increased training for role. Exact purposes at discretion of Commission.

Ontario Undergraduate Student Alliance (OUSA)

Memberships $(27,633.41) Optional Advocacy fees for Gov't advocacy (provincial) means planning around 30% opt-out rate. The budgeted amount is based on inflationary adjustment (x1.023) and opt-out expectations over the year (x0.70). Note: OUSA expenses are tied 1-to-1 with student fee payment by contract, if fewer students opt-out then this expense will exceed the budgeted amount.

Special Events $50.00 Stakeholder Relations Officer (SRO)

Photocopying $(25.00) Decreased based on actual use

and direction for cost control

measures from the Committee.

Office Supplies $(20.00) Decreased based on actual use

and direction for cost control

measures from the Committee.

Travel/Conf/Professional Development $100.00 Increase in professional

development opportunities and


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travel for stakeholder

engagement options.

Year-over-Year Growth

Fiscal Year Budget Actual Inflation-Adjusted Budget

Inflation-Adjusted Actual

2010/2011 $126,177.06 $122,826.18 $145,103.62 $141,250.11

2011/2012 $138,144.30 $136,829.36 $154,721.62 $153,248.88

2012/2013 $152,644.31 $159,309.26 $167,908.74 $175,240.19

2013/2014 $185,588.12 $155,221.40 $202,291.05 $169,191.33

2014/2015 $199,662.65 $176,666.29 $211,642.41 $187,266.27

2015/2016 $200,069.10 $162,924.07 $210,072.56 $171,070.27

2016/2017 $194,917.35 $186,601.27 $200,764.87 $192,199.31

2017/2018 $196,554.46 $196,934.42 $200,485.55 $200,873.11

2018/2019 $198,563.68 $198,882.26 $203,130.65 $203,456.55

2019/2020 $206,218.88 $- $206,218.88 $-

Future considerations Specifically, it is the opinion of the Committee that the following recommendations be acted upon:

That Education & Advocacy specific contingency plans be developed and presented to the VPs

Education and Operations & Finance as fallback options in the event that a review by the MTCU

– or reclassification by the University – determines that those services, commissions, or

initiatives be considered optional rather than compulsory. Such planning should include

transition methodology, scale-back of expenditures, and alternative revenue considerations.


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Given that the prior FY2019 Budget Report identified a decline in real dollars available to the

Education & Advocacy portfolio due to increases in the OUSA fee being unmatched by increases

to the Operating Levy, it is recommended that a review be undertaken of options to prevent this

occurring in future years. Pending such review, the Office of the Vice President, Education,

should draft a corporate policy for consideration by the Students’ Council regarding floating fee

adjustment for the OUSA Membership fees not exceeding CPI, whereby CPI-driven increments

to the OUSA fee made by the Steering Committee would be matched by an increase to

appropriate fee bucket.

o Note that this course of action can likely be done in a manner compliant with the

MTCU’s Ancillary Fee Directive and Article 13: Membership in External Political

Organizations of the Bylaws, by keeping the fee within its fee bucket, but removing the

OUSA Membership Fee6 from the General Operating Budget and creating an

Administered Fund.

o If such action is taken the recommended steps are that the Vice President, Education,

draft a proposal to shift the OUSA Membership Fee from the General Operating Budget

to a new Administered Fund, to be accepted by Council. If accepted by Council, the

Board be recommended to create a new Administered Fund for OUSA. Upon such

approvals, the Office of the Vice President, Operations & Finance, shall sever the OUSA

Membership Fee from the operating budget and issuing notice for the same.

Addressing identified concerns in the FY2019 Budget Report, the Office of the Vice President,

Education should increase funding for in-house advocacy efforts with support of student staff

and volunteers, in an effort to reduce both the financial and operational impacts of losses

experienced by the portfolio over the prior decade.

Ensure that advocacy efforts and successful outcomes of advocacy and their impacts on

students are well communicated and marketed. Given the Student Choice Initiative, it is

imperative that this be a top priority for the organization to ensure the average student payer is

aware of the value of their advocacy fees. Such action may offset some losses within the

Education & Advocacy portfolio.

A departmental strategy plan be developed specific to each commission to guide the budget

development process, particularly as the Committee moves toward a multi-year budget model.

Such planning may also provide support through turn-over of executive and commissioner

leadership.

o Regarding the Centre for Academic Policy Support, an implementation plan for the

direction, staffing, and resource needs of the service should occur. Such a plan should

provide for any FTE or PT staffing needs, as well as projections of anticipated volumes of

users to inform the budget process.

6 Note this is specific to the membership fee, Account number 66050 of Department 41400 – OUSA, not the entire OUSA budget within thee Education & Advocacy portfolio.


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Operations & Finance Portfolio

Overview The portfolio includes a multitude of departments within the organization including all Commercial

Operations/Business Units, Marketing & Communications, Accounting, IT, Internal Development, and

SLC Operations. For budgeting purposes, the Operations & Finance portfolio is comprised of seven (7)

main subcategories of the operating budget, of which four (4) divisional budgets within the portfolio are

restricted by the Board of Directors in accordance with Policy 52, Freedom of Information & Secrecy in

Corporate Governance, in the interest of legal and insurance affairs, commercial operations which under

good business practice would not ordinarily be publicly disclosed, and matters pertaining to human

resources or contract that the organization is legally obligated to keep confidential.

The bottom lines of all restricted budgets, including those of business units, are made public for forward

looking comparison against the annual audit, for further information on restricted budgets, see the

Corporate Overview. These divisions of the portfolio include:

VPOF – The Vice President, Operations & Finance (VPOF) oversees the financial and

administrative aspects of the corporation. This role also assists student groups with their

budgeting, facilitates updates to the Health and Dental insurance plans, oversees pooled

benefits plans like the UPass program and the Legal Protection Service, administers the Student

Refugee Program in conjunction with on-campus partners, and oversees management of Part-

Time and Full-Time personnel.

Director of Operations & Development – The Director of Operations & Development oversees

the Commercial Operations Manager, including the various retail and hospitality businesses

operated by the association, supervises internal development and information technology, and

oversees SLC Operations. This budget accounts for the day-to-day office work and projects that

coincide with the Operations & Finance portfolio.

Operations* & Facilities* – This division includes restricted budgets for the various business

units operated by WUSA as well as the operations of the Student Life Centre. Pursuant to Policy

43, Commercial Operations, all Commercial Operations are self-run, meaning the revenues

brought in throughout the year pay for the expenses going out. The rise of food and labour costs

is a reoccurring burden for many of our commercial operations. Tactics have been implemented

to pay close attention to costing and labour forecasts, while not hindering the quality of these

businesses.

Information Technology* - 90% Student Fee, 10% Business Units – IT incurs most of its capital

costs from ongoing necessary software licensing and hardware replacement in WUSA offices

and operations. In addition, recent budget growth is largely due to license/subscription

centralization from the other departments within WUSA and investment in infrastructure to

provide fee verification and opt-in/out-out controls required by changes to government policy,

as well as the necessary administrative costs that accompany this scale up in operations. Ten

percent (10%) of the department’s costs are borne by business unit cost centres reflecting the

approximate use and expense of this overhead department.

General Office* - 90% Student Fee, 10% Business Units – The General Office accounts for WUSA

insurance, legal and contractual expenses, memberships, banking and some full-time salaries.

Primary costs are legally or contractually required, such as insurance for student spaces and for


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Societies, or an independent public audit. The senior management team constantly explores

options to minimize these fees, to provide the best value-for-money for members. Ten percent

(10%) of the department’s costs are borne by business unit cost centres reflecting the

approximate use and expense of the overhead departments funded by the General Office

budget.

Services Salaries – All full-time salaries from WUSA are paid in accordance with the University

Support Group corresponding with their evaluated job description. Salaries reflected an

economic increase of 2% in accordance to the scale adjustments from Human Resources and

UW Staff Association.

Marketing & Communications – This department promotes and advertises information of

WUSA. This includes marketing for the clubs, services, special events, commercial operations,

advocacy, group benefits plans, and some societies. The department has many students working

part-time for promotions, videography, and design.

(*) indicates a budget restricted by the Board of Directors.

A summary breakdown is presented below, followed by a strategic categorization by which the

portfolio’s expenses can be reviewed in a more general context.

Considerations in Budget Development —A multitude of changes in public reporting, business

forecasting, costing estimates, and similar occurred in the Operations & Finance portfolio in the last

year. Below is a summary of primary factors that were considered in development of these budgets.

1. Clarity and Corporate Accountability — In an effort to more clearly outline the actual functions,

departments supported under the portfolio directly, performance of commercial, and

administrative the Committee directed the overhaul of the portfolios reporting. For the first

time, the Operations & Finance portfolio will report on all items within its purview and provide

budgeted bottom lines by which to compare audited results at year’s end for each of the units it

oversees. This is of paramount importance for commercial operations, which have long

benefited from nontransparent reporting of business performance; particularly in the context of

student (and community) surprise at the closure of the Bombshelter Pub last year which had

long suffered from financial losses that the organization could not continue to bear. Lack of

appropriate reporting for comparison of budgets and actual expenditure, obfuscated costing of

salaries and administrative overheads, among other concerns culminated in surprise and anger

from membership when the business closed. By charging out salary costs to each unit and

identifying those units’ overhead contributions and individual performance as a note on the

income statement, commercial operations management can be held to account for business

performance in a transparent, concise, and accessible manner.

2. Separation of Services Salaries — Although still reported in aggregate, services salaries – the

salaries of full-time personnel for those non-business units which cannot be charged out to

individual departments easily while maintaining privacy requirements – are no longer reported

as part of the General Office budget, but rather their own line with the portfolio to highlight

their distinction from the actual General Office functions.

3. Removal of Marketing & Communications as a Restricted Budget — At the recommendation of

Council, and with no reasonably compelling need for restriction, the Board of Directors lifted the

restricted status on the Marketing & Communications Departmental Budget. As a result, with


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the exception of Operations & Facilities Marketing budget, the department’s budget is now

entirely public, and its resource allocation determined by elected student representatives.

4. Funding for the “Director of Commercial Operations” — At its 16 September 2018 regular

meeting, the Students' Council overturned a previous decision regarding funding of the former

role of "Director of Commercial Operations" out of member dues. Council set new budgetary

requirements that the salaries and expenses of role be borne by commercial operations cost

centres solely. A complication arose because the role in question no longer existed in the same

form, but had been repurposed into two roles, one focused entirely on businesses operations,

that being the “Commercial Operations Manager” role, and one focused on oversight and

planning for all operations and internal development, including IT and the SLC, that being

“Director of Operations & Development” role. As such, the salary and expenses of the

Commercial Operations Manager were costed out to each of the business units, and one-third of

the office costs of the Director of Operations & Development, which includes office expenses for

the Commercial Operations Manager, were charged to the Operations & Facilities budgets. The

budget for the Director and the bottom lines for the business units reported reflect these

changes.

5. Changes in Overhead Costing for Operations & Facilities — Formerly, 20% of the costs of the

primary overhead units (General Office and IT) were borne by Operations & Facilities, while 80%

was funded through student fees. As a result of Student Choice Initiative and a review of

business unit performance, this funding distribution was reviewed based on time-audit and

planned project impacts on the overhead departments for the services versus business portions

of the organization, resulting in a new costing of 10% for Operations & Facilities and 90% funded

through student fees. Reasoning includes, but is not limited to:

a. Decreases in accounting load and changes to insurance from the shutdown of the

Bombshelter Pub and lack of operation of Campus Bubble/Wasabi (which had been

closed for the beginning of the SLC/PAC Expansion) the General Office workload was

substantially smaller relative to that of non-commercial aspects of the corporation.

b. The restructuring of fees into optional and compulsory categories, audit and reporting

requirements for those fee buckets, IT infrastructural and staff time for opt-in/opt-out

controls, and development of a fee payment verification mechanism has resulted in

increasing reliance of many service departments on IT and the General Office.

6. SSAC Funding for SLC Operations & Salaries — The Student Life Centre budget may be subject to

fluctuations on the order of $100,000 due to operations and salaries costs potentially being

provided for via the Student Services Fee(s). The Student Services Advisory Committee (SSAC)

had voted to approve salary and space costs for the SLC when the SLC/PAC Expansion

completed. In particular, the SLC’s expanded food court is set to open this Fall 2019 Term,

meaning in all likelihood the SLC could see cost recovery via the Student Services Fee as early as

Winter 2020 term, or if construction delays persist, as late as Spring 2020 Term.

Strategic Categorization Strategic categorization for the Operations & Finance portfolio’s expenditure is shown below with

supporting data shown immediately thereunder. Note that many of this expenditures of the portfolio


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are not from student fees, but rather from sales in business operations, marketing, facilities

management, and similar.


Administrative & Financial Management

$944,770.46 18.68%

Student Development $532,065.591 10.52%

Research & Development $212,030.96 4.19%

Stakeholder Relations $89,520.54 1.77%

Business Operations $2,186,773.21 43.24%

Capital Improvement & Maintenance

$1,037,831.36 20.52%

Executive Compensation $54,665.59 1.08%

Total $5,057,657.71 100%

The Operations & Finance portfolio is focused on execution of budget preparation and controls, financial

analysis, administration & financial management, and business operations which are largely divided

amongst the following seven identified strategic categories: administration, executive compensation,

stakeholder relations, student development, capital improvement, business operations, and research &

development.

Administration & Financial Management — 18.68% of the portfolio budget is spent on general

administration and controller functions, including human resources management for all full-time

and part-time staff and committee functions related to the role of the Vice President.


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Executive Compensation — salary, benefits, and transition honoraria for the VP Operations &

Finance accounts for 1.08% of the portfolio budget. Considering the focus of the Vice President’s

office is on business operations and financials, fewer resources are required for this portfolio

relative to others.

Stakeholder Relations — Stakeholder relationships accounts for 1.77% of the portfolio

expenditures. Stakeholder relations fosters and supports relationships with students, University

administration, and external groups. The portfolio’s stakeholder relationships include legal,

commercial operations with on and off campus partners, sponsorship development, auditors,

etc.

Student Development — 10.52% of the portfolio budget is spent on student development. This

covers conferences, professional development opportunities for students, travel, and some

special projects within the portfolio.

Research & Development — 4.19% of the budget is allocated to research and development that

supports market analysis, financial analysis, business plans, and organizational planning. This

includes some conference and travel expenses related to research.

Business Operations — 43.24% of expenditure is related to business operations, which in turn

bring in more than $5M in annual revenues. This includes operating student-run businesses,

strategic business considerations, planning expansion and directional changes to businesses,

and commercial operations marketing.

Capital Improvement — Capital improvement accounts for 20.52% of expenses. This goes

toward supporting capital maintenance and improvement in the Student Life Centre, for

commercial operations, IT infrastructure, and more.

Summary of Portfolio Summary of Revenues/Gross Profit Budget 18/19 Actual 18/19 Budget 19/20

VPOF (10100) $- $- $-

Director of Operations & Development (11100)

$- $- $1,108.81

Operations (11000) & Facilities (15000) $2,260,910.67 $1,992,720.72 $1,805,872.60

Information Technology (14000) - 90% Student Fee

$- $- $-

General Office (13000) $3,420,000.00 $3,420,000.00 $3,786,337.85

Marketing & Communications (16000) $144,372.00 $118,192.24 $163,545.04

Total $5,825,282.67 $5,530,912.96 $5,756,864.30


VPOF (10100) $72,173.68 $63,806.93 $75,141.74

Director of Operations & Development (11100)

$3,505.00 $3,667.06 $3,696.04

Operations (11000) & Facilities (15000) $2,627,623.93 $2,551,333.82 $1,836,271.56

Information Technology (14000) - 90% Student Fee

$277,300.16 $277,540.16 $390,522.09

General Office (13000) - 90% Student Fee $956,883.51 $765,506.81 $1,023,284.03

Services Salaries $1,382,194.09 $1,382,194.09 $1,383,410.00

Marketing & Communications (16000) $366,333.20 $284,294.08 $345,332.25

Total $5,686,013.57 $5,328,342.95 $5,057,657.71


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Excess (Deficiency) of Revenue over

Expenses

$139,269.10 $202,570.01 $699,206.60

Distribution of Revenues/Gross Profits

All revenues from student fees, the departments within the portfolio, interest, and investments are

reported through the Operations & Finance portfolio. This is the principal revenue centre for the

organization, from which all other portfolios and administrative departments are predominantly funded.

Distribution of Expenses


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Despite support staff being organized by the Personnel Committee to each of the portfolios based on

function or need, or earmarked fee increases, all full-time salaried staff are costed to the Operations &

Finance portfolio. Composing 27% of the allocated expenses in the budget and excluding business

salaries and some departmental salaries, the Services Salaries are primarily used for the support of the

other portfolios, in particular the Student Life portfolio.

Summary of Operations & Facilities Departments Revenues Budget 18/19 (to Mar 24) Actuals 18/19 Budget 19/20

INews $1,605,004.39 $1,734,880.83 $1,777,551.16

Caffeine Dispensary $133,218.19 $141,813.61 $112,433.92

Feds Used Books $887,050.00 $867,176.19 $915,532.50

Makers Kitchen $714,607.90 $738,686.89 $832,920.00

Bombshelter Pub $1,311,231.00 $750,195.05 $-

Student Life Centre $1,812,852.04 $1,691,774.21 $1,761,075.32

Total $6,463,963.52 $5,924,526.78 $5,399,512.90

Cost of Goods/Sales Budget 18/19 (to Mar 24) Actuals 18/19 Budget 19/20

INews $1,216,264.71 $1,243,223.42 $1,236,677.31


Feds Used Books $653,125.00 $597,460.36 $672,548.13

Makers Kitchen $279,218.47 $301,426.23 $352,923.36

Bombshelter Pub $522,417.00 $361,076.58 $-

Student Life Centre $1,471,480.90 $1,369,270.88 $1,271,142.00

Total $4,203,052.85 $3,931,806.06 $3,593,640.30

Gross Profit $2,260,910.67 $1,992,720.72 $1,805,872.60

Expenses Budget 18/19 (to Mar 24) Actuals 18/19 Budget 19/20

INews $365,509.41 $472,542.18 $463,367.91


Feds Used Books $125,161.55 $113,066.34 $202,301.08

Makers Kitchen $276,573.89 $335,668.55 $470,040.04

Bombshelter Pub $948,891.00 $714,699.61

F/T Business Unit Salaries $224,800.00 $228,687.06

Student Life Centre $327,919.74 $334,155.95 $465,815.31

10% General Office $202,413.54 $191,376.70 $113,698.23

10% IT $69,325.04 $69,385.04 $43,391.34

Transfers-out (Director of Operations & Development, 50%)

$1,108.81

Total $2,627,623.93 $2,551,333.82 $1,836,271.56


Expenses

$(366,713.26) $(558,613.10) $(30,398.96)

Notes on income statement presented above:

Unit Performance without Overhead Costs

Operations Profit (Loss)


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INews $77,505.93 Caffeine Dispensary $(24,464.42) Feds Used Books $40,683.30 Maker’s Kitchen $9,956.60 Business Unit Excess (Deficiency) of Revenue over Expenses

$103,681.41 Includes Salaries, but not overheads.

Facilities Profit (Loss) SLC $24,118.01

Facilities Excess (Deficiency) of Revenue over Expenses

$24,118.01 Includes Salaries, but not overheads.


Expenses

$127,799.42

All Operations & Facilities operate as social enterprises, meaning their net surplus (loss) are used to

support (or are supported by loan from) the organization. The objective of operations – commercial

especially – is to support the rest of the organization in the promotion of its not-for-profit aims and

objects. During the last governing year, the Students’ Council approved amendments to the Policy 43,

Commercial Services, that required that no money collected from student fees could be used to pay for

expenses, direct or indirect, incurred by commercial operations, with some exceptions. In addition,

policy amendments required that any net income from commercial operations, after capital

improvements, was to be passed to the general fund for furtherance of the objects of the Corporation.

With the Bombshelter Pub having been closed – running a final deficit exceeding $325k – the

commercial operations are better placed to support the organization as it enters the Student Choice

Initiative (SCI), where some fees are optional. A review of pricing and preparatory costs has reduced

costs of goods, yielding a greater gross profit. In addition, all full-time salaries for commercial

operations, including that of the Commercial Operations Manager, have been costed out to each of the

units (hence the increases in expenses for the various business units, particularly Maker’s Kitchen which

prior to FY2020 was listed 50% as a service salary as the Kitchen was used by students generally as well).

The onset of the SCI has meant that the Caffeine Dispensary support fee no longer may exist. This has

led to the operations running a nearly $25k loss, which is being covered off by other business units.

Were WUSA not to operate the Dispensary, the net loss would be $(5,934.54).

A review of the notes on the income statement shown above, which highlight the bottom line for each

business inclusive of the salary costing for those units, demonstrates sound financial position of most of

the business units. Overhead costing included puts the businesses collectively at a deficit of

approximately $(30k). However, as the overhead costs would ordinarily need to be paid anyhow by the

association through other forms or revenue (such as student fees), this indicates that the businesses are

paying into the furtherance of the Corporation generally. This financial support from the business units

in turn allows greater support for the promotion of objects of WUSA and ensuring the organization is on

more sound financial footing as optional student fees enter permanence.


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Distribution of Operations & Facilities Departmental Gross Profit

Distribution of Operations & Facilities Departmental Expenses

Summary of Marketing & Communications Department Summary of Revenues Budget 18/19 Actual 18/19 Budget 19/20


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Marketing - General $34,062.00 $27,596.60 $25,000.00 Communications $- $- $- Handbook $40,000.00 $46,744.39 $40,000.00 Marketing - Advocacy $- $- $3,240.00 Marketing - Campus Life $- $- $- Marketing - Research, Clubs & Societies $- $- $- Marketing - Commercial Operations $70,310.00 $43,851.25 $95,305.04

Total $144,372.00 $118,192.24 $163,545.04 Summary of Expenses Budget 18/19 Actual 18/19 Budget 19/20

Marketing - General $190,568.20 $158,476.70 $70,095.97 Communications $21,265.00 $20,872.93 $28,480.50 Handbook $41,300.00 $40,122.99 $27,000.00 Marketing - Advocacy $8,660.00 $7,607.52 $35,112.51 Marketing - Campus Life $23,890.00 $19,032.41 $55,046.72 Marketing - Research, Clubs & Societies $10,340.00 $5,122.29 $34,291.51 Marketing - Commercial Operations $70,310.00 $33,059.24 $95,305.04

Total $366,333.20 $284,294.08 $345,332.25 Excess (Deficiency) of Revenue over

Expenses

$(221,961.20) $(166,101.84) $(181,787.21)

The Marketing & Communications Department provides support to WUSA services, societies, clubs and

departments through marketing and communications for efforts that inform University of Waterloo

undergraduates on the ways their student union serves, empowers and represents them. The

department is also responsible for production of the student handbook.

Prior to FY2020, the Marketing & Communications budget was a confidential budget restricted by the

Board of Directors. At the recommendation of Council, the Board unrestricted this budget. It is now

budgeted for in accordance with the appropriate departments and units it supports. Except for the

Commercial Operations Marketing portion of the budget, the budget is public and set by the Students’

Council as of this year. The Commercial Operations portion is funded through a percentage of sales and

is accounted for in the business unit budgets as an advertising expense (transferred out to the

Marketing & Communications Department).

The department has successfully reduced its expenses relative to the FY2019 by six percent (6%) and

increased its revenues by thirteen percent (13%), despite an ongoing rebrand. The Spring term rebrand

costs are reflected in the amounts appropriated and were budgeted for in the transitional budget by the

outgoing Executive and Budget & Appropriations Committees.


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Distribution of Marketing & Communications Departmental Revenues

Distribution of Marketing & Communications Departmental Expenses

Changes in Budgeted Lines FY2019 to FY2020 The bottom line changes that occurred from last fiscal year to this fiscal year was a $559,937.50 increase

in surplus, with a $(628,355.87) decrease expenses. Below there is a line by line assessment for those


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public budgets funded by student fees directly overseen by the VPOF comparing budgeted values to one

another. All values are rounded to the nearest cent.

Operations & Finance Portfolio Expense Changes Reason Office of the Vice President Operations & Finance Wages $1109.24 Adjustment for CPI increase. Benefits $106.48 Adjustment for CPI increase. Cell Phone $20.15 Increase in cell & data plan

support. The VP Operations & Finance is on call for emergencies in the SLC, other Society spaces on campus, health & safety inspections, and operational affairs.


Travel/Conf/Prof.Dev't $300.00 Increased for SLC/PAC expansion projects, research & development use, and municipal negotiations for transit.

Staff Relations $(500.00) Decreased based on actual use. Amortization $(500.00) Final payment for amortization. No

further amortization should be needed in this line.

Criterion License $(2000.00) Discontinued licensing. Moving

toward Netflix and other similar

partners for general license.

Transition Honoraria $(542.80) Restructured transition honoraria so only incoming executive receive honoraria. It is the expectation of an outgoing executive to transition their successor.

Internal Funding Committee –

Special Projects Fund $5000.00 IFC was moved under the VPOF

at Council’s direction last year. Last year the fund was not budgeted for by the VPSL. Procedure requires funding of this line.

Director of Commercial Operations Transfers-in (Commercial Operations, 30%)

$1108.81 Required by Council and corporate policy. Paid by Commercial Operations (covering off 30% of office costs).

Cell Phone $11.04 Increased based on actual use

and projected need given

ongoing projects.

General Office Supplies $(20.00) Decreased based on actual use.


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Auto $(100.00) Decreased based on actual use. Travel/Conference/Prof Dev $300.00 Increased for SLC/PAC expansion

new projects and research & development required for fee payment verification, opt-in/out infrastructure, and similar.

Staff Relations $(550.00) Decreased based on actual use. Operations & Facilities Departments INews $54,275.66 Increases in sales, review of

pricing and discounts, increased price controls. Decreases resulting from inclusion of all appropriate FT Salary costs.

Caffeine Dispensary $(10,106.08) Implementation of SCI has resulted in no Pharmacy student fee support. Additional decreases resulting from inclusion of salary costs, change in hours.

Feds Used Books $(68,080.15) Primarily driven by projections of increased textbooks sales. Decreases resulting from inclusion of all appropriate FT Salary costs.

Maker’s Kitchen $(148,858.94) Increases in gross profit. Decreases resulting from inclusion of all appropriate FT Salary costs.

Bombshelter Pub $(160,077.00) Closure of the Bombshelter Pub resulted in no ongoing expenses after write offs.

Student Life Centre $10,666.62 Increases in support contributions from the University of Waterloo (SSAC). Inclusion of all appropriate FT Salary costs.

Full-Time Business Salaries $(224,800.00) Salaries are costed out to each unit now, rather than aggregated. Unit performance can now be identified transparently.

General Office Contribution $(88,715.31) Contribution amount reduced from 20% to 10% reflective of time audit and planned projects.

IT Contribution $(25,933.70) Contribution amount reduced from 20% to 10% reflective of


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time audit and planned projects.

Transfers-out (Director of Operation & Development, 30%)

$1,108.81 Required by Council and corporate policy. Paid by Commercial Operations (covering off 30% of office costs).

Marketing & Communications Department

Marketing General

Advertising Revenue $5000.00 Based on actual revenues. Advertising Business Revenue (20% of total)

$(14062.00) Discontinued guaranteed funding model. Replaced with percent of sales model

Part-Time Salaries & Wages $(128,132.03) Salaries & Wages have been costed out to each Marketing unit as appropriate. General marketing has been retained in this line.

Telephone $(300.00) Reduced based on direction for expense controls from VPOF.

Printing/Graphic $(2,000.00) Reduced based on direction for expense controls from VPOF.

General Office/Computer Supplies $(1,000.00) Costs for PT staff management software and subscriptions subsumed by IT.

Entertainment/Promo/Meetings $(300.00) Reduced based on direction for expense controls from VPOF.

Promotions $3,700.00 Increased for rebrand, budgeted for by outgoing Committee.

Travel/Conference/Wk./Prof. Dev. $1,000.00 Hosting AMICCUS-C Regional Conference.

Advertising $9,000.00 Increase for rebrand. Staff Relations $(1,000.00) Reduced based on direction for

expense controls from VPOF. Special Projects $(500.00) Reduced based on direction for

expense controls from VPOF. Amortization $(940.20) No new computers were

acquired last year, so no anticipated amortization expenses.

Communications

Part-Time Salaries & Wages $5,707.50 Increases to cover improved communications, taking on PT staff.

Telephone $300.00 Additional FT Staff member resulting from rebrand.


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General Office/Computer Supplies $(100.00) Reduced based on direction for expense controls from VPOF.

Entertainment/Promo/Meetings $(150.00) Reduced based on direction for expense controls from VPOF.

Travel/Conference/Wkp/Prof. Dev. $1,450.00 Additional staff added and outgoing committee approved expenses for digital conference for a staff member.

Subscriptions $(200.00) Consolidated under IT Amortization $408.00 Digital and media capital assets

purchased in prior year. Video Projects $(200.00) Digital and media capital assets

already purchased; line returned to prior position.

Student Handbook

Printing/Graphic $(14,300.00) Printing costs reduced with new design and binding style.

Marketing - Advocacy

Endowment Fund Promotion Revenue

$500.00 IFC authorized funding from WUSA administered endowments to support their own promotion.

SLEF Governance & Advocacy Sponsorship

$2,740.00 Transfer-in from the Governance Portfolio budget based on funds awarded from SLEF.

Part-Time Salaries & Wages $23,152.51 Costed out to from Marketing – General.

Telephone $50.00 Based on actual use. Printing/Graphic $(700.00) Previously used for all proofs

and other general printing costs, as well as cost of printing advocacy documents; moved to applicable lines to make print log easier.

Advertising - Special Projects $500.00 Leadership Awards Advertising and anything outside of planed advocacy and governance events that arises.

Advertising - Advocacy $1,200.00 Federal Election, SCI awareness campaign, and rebranding

Advertising - Elections $3,000.00 Elections and elections rebranding costs

Advertising – General Meetings $1,000.00 Consolidated by prior Executive. Marketing – Campus Life


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Part-Time Salaries & Wages $36,731.72 Costed out to from Marketing – General. Includes some rebrand PT Staff support.

Photocopying $(50.00) Reduced based on direction for expense controls from VPOF.

Printing/Graphic

$(200.00) Reduced based on direction for expense controls from VPOF.

General Office/Computer Supplies


Entertainment/Promo/Meetings


Advertising $(300.00) Reduced based on actual use. Advertising – CRT $100.00 Increased based on CRT budget

request. Advertising – Women's Centre $(500.00) Reduced based on direction for

expense controls from VPOF and parity between services.

Advertising – Glow Centre $(200.00) Reduced based on direction for expense controls from VPOF and parity between services.

Advertising – Sustainable Campus Initiative

$(500.00) Reduced based on conversations on future direction of the Service.

Advertising – Student Food Bank $(100.00) Reduced based on actual use and expense control directive from VPOF.

Advertising – ICSN $(100.00) Reduced based on direction for expense controls from VPOF and parity between services.

Advertising – Co-op Connection $100.00 Increased based on Council direction form prior Fiscal Year for increasing awareness of service.

Advertising – Volunteer Centre $(532.80) Service terminated by Council. Only $67.20 was spent in Spring term for the First-Year Fair, not additional funds required.

Advertising – Bike Centre $(200.00) Reduced based on actual use and expense control directive from VPOF.

Advertising – MATES $(300.00) Reduced based on actual use. Advertising – Warrior Tribe $(2,000.00) Service terminated by Council in

prior Fiscal Year. Advertising – RAISE $(500.00) Reduced based on direction for

expense controls from VPOF and parity between services.


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Advertising – Welcome Week $(500.00) Reduced based on direction for expense controls from VPOF.

Advertising – Wellness Days $(500.00) Reduced based on actual use. Advertising – Centre for Academic Policy Support

$1,000.00 Commission expected to formalize, discussion on appropriate housing for marketing support landed on conglomeration with remaining services.

Services Special Projects $(100.00) Reduced based on actual use. Marketing – Operations & Facilities

Advertising - Commercial Operations Revenues

$24,995.04 Increased based on percent of sales.

Total Expenses $24,995.04 Increased to allow for additional marketing of new coffee brand, potential roll out of new business venture in Campus Bubble/Wasabi space, and Bomber space focus groups. In addition, PT Salaries have been costed out.

Marketing – Research, Clubs & Societies

Part-Time Salaries & Wages $27,991.51 Costed out to from Marketing – General.

Telephone $(300.00) Eliminated redundant expense; same staff member as Operations & Facilities Marketing.

Cell Phone $(240.00) Eliminated redundant expense; same staff member as Operations & Facilities Marketing.

Photocopying $(50.00) Reduced based on actual use. Printing/Graphic $250.00 Increased based on actual use. General Office/Computer Supplies $(100.00) Reduced based on actual use. Entertainment/Promo/Meetings $(100.00) Reduced based on actual use. Advertising $(500.00) Consolidated with another

budget line for clarity of reporting. No increases to other line observed.

Mystery Shopper Program $(500.00) Moved to Commercial Operations Advertising, as predominant benefactor is commercial.

Advertising – Special Events $(500.00) Reduced based on actual use. Further decreases not


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recommended without examination of impact.

Research $(1,200.00) Decreased based on actual use. Subscriptions $200.00 Clubs advertising tool

subscriptions. Census $(1,000.00) Project cancelled.

Year-over-Year Trends

Nominal and Adjusted Budgeted and Actual Income

Fiscal Year Budget Actuals CPI Adjusted Budget

CPI Adjusted Actuals

2010-2011 $(102,275.88) $(109,350.14) $(119,891.52) $(128,184.23)

2011-2012 $(137,430.41) $(113,144.69) $(154,355.34) $(127,078.77)

2012-2013 $(81,678.73) $(53,564.15) $(91,737.69) $(60,160.72)

2013-2014 $(101,621.20) $(58,250.92) $(112,930.79) $(64,733.76)

2014-2015 $(71,930.03) $(57,431.28) $(78,281.85) $(62,502.78)

2015-2016 $(77,552.12) $(65,282.34) $(83,339.59) $(70,154.16)

2016-2017 $(81,863.88) $(63,890.06) $(87,016.15) $(67,911.11)

2017-2018 $(81,931.18) $(70,385.28) $(85,886.48) $(73,783.19)

2018-2019* $139,269.10 $202,570.01 141,967.31 206,494.62

2019-2020 $699,139.40 - $699,139.40 - Note: values from FY2019 an onward, are reported as the excess revenues over expenses for the entire administrative, operations, and financial

department budgets, including all bottom-lines.

Future Considerations As reported last year, the actual inflation-indexed costs of the Office of the Vice President and the

Director of Operations & Development have reduced in real dollars over the last decade. However, in

recent years these office costs have begun to stabilize at just below approximately $80k (this year will

see a $77k in expenses for the Office, a difference of ~ $2,000 from the prior fiscal year). Figures from

FY2019 and onward have been adjusted to a new budget model at the decision of the Budget &

Appropriations Committee, as requested by the Board, to increase the clarity of budgeting to the

average student and showcase actual performance of individual units. In addition, the lifting of

confidentiality surrounding the Marketing & Communications Budget has skewed costs in FY2020, so the

prior year was adjusted for comparison’s sake.

The portfolio has had a sustained need for administrative support as greater functional requirements

and demands are made on the Office of the Vice President, Operations & Finance, and the Office’s

charge in support of the objectives set by the Executive Committee, the Students’ Council, and the

Board of Directors. IT costs have increased by 41% relative to the prior fiscal year due to increased

requirements from other portfolios for ramp-up of ongoing projects as well as addition of new project

costs, including: vote.wusa.ca platform for the governance portfolio, clubs and services management

tools for the student life portfolio, fee verification and opt-in/out infrastructure for the organization, etc.

Operations & Facilities has seen a 20% reduction in revenue and a 30% reduction in costs primarily

driven by the closure of the Bombshelter Pub, but also due to efficiencies and a review of pricing.


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Ultimately though, while the increases in revenues are likely able to be maintained in the mid-term,

many of the reductions in expenses require thorough review for long term sustainability. In particularly,

the frequency of out-of-budget capital expenses impacting actuals has become a greater reality year-

over-year.

It is the recommendation of Budget & Appropriations Committee that:

Greater administrative, financial, and secretarial support be provided to the Operations &

Finance portfolio for amount being requested of the portfolio’s departments. This burden is not

likely to decrease, and ongoing administrative support offers consistency and maintenance of

important priorities between governing years where they might otherwise be impacted by turn-

over.

Consider reclassification of centralized salary costings and overhead departments to their

respective portfolios, rather than their current location under the Operations & Finance

portfolio. These changes may more truly capture the costs for each portfolio, rather than

subsuming the costs under the Operations & Finance portfolio.

o The Personnel Committee should review whether Full-Time services salaries can and

should be costed out to each of the appropriate portfolios, or if possible, their

subsidiary departments. The reporting of services salaries through the Operations &

Finance portfolio is misleading as it implies this staff support directly benefits or

supports administration of that portfolio, when in reality many of these costs would be

more appropriately listed as expenses in other portfolios.

o The Vice President, Operations & Finance, and General Manager should consider

whether costing out central overhead and administrative support departments is a

reasonable approach given the Ancillary Fee Directive. If this action is decided against,

then future budget reports should continue to note these central departments as

providing costs for the entirety of WUSA and its constituency societies.

Resulting from the Ancillary Fee Directive, the “Student Services Fee” set by the Student

Services Advisory Committee (SSAC) is now to be broken up. Therefore, students will in short

order see two or three Student Life Centre fees on their fee statement. Consolidation of the

“Student Services Fee – SLC" (set by SSAC) and “SCL Facilities Fee” (set by WUSA) should be

undertaken. The Committee recommends that the Executive work with the Graduate Student

Association to reduce SSAC fee(s) by amount equivalent to the increase in the “SLC Facilities

Fee”. This will retain governance of critical student fee by students directly rather than indirectly

from a committee on which University staff and senior administration have voting rights and

reduce the confusion of having multiple seemingly redundant fees.

o Should the University and WUSA be unable to reach a compromise to this effect, WUSA

should at the very least seek SSAC support to begin mid-way through the Fall 2019 Term

due to the opening of the expanded SLC Food Court.

A review of necessity for telephone lines and cellphone support should be immediately

undertaken and budgets amended as required to reduce unnecessary expenses.

The staff benefits packages should be immediately reviewed by the Executive Committee to

ensure their provisions are sensible under the Student Choice Initiative.

A business unit within Campus Bubble/Wasabi space should be opened with a new competitive

concept in the SLC/PAC Expanded food court to generate revenue to better support salary costs


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for the Maker’s Kitchen, which was formerly supported by both the prior business units in this

space and student fees. This will enable some salary costings currently borne by Maker’s Kitchen

to be offloaded to a new business in that space, which will help support overhead functions.

The Marketing & Communications Department refocus efforts to better communicate and

promote advocacy in all facets of the organization’s activities.

A review of Part-Time Staff compensation should be conducted that examines parity between

departments and portfolios in terms of compensation and benefits. A standard policy should be

developed on this matter. It is disconcerting to the committee that various “service”

departments differ considerably in payment without a structured corporate policy or Board

procedure standardizing or stratifying salary rate differences.

The 2.5% administrative overhead on administered funds be recalculated to include advocacy

costs reflecting the true costs of administered programs, including advocacy that makes them

possible. This may be costed out to these funds (e.g. Municipal Affairs Commission as it pertains

to U-Pass). That the Board direct the Vice President, Operations & Finance, to issue fee

adjustments for the recalculated overhead amount.


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Corporate Overview

Student Fees The major source of revenue for WUSA is through student fees. Note that the Fiscal Year runs 1 May

2019 to 30 April 2020, however the Academic Year runs from 1 September 2019 until 31 August 2020. In

practice, this means that typically fee increases come one-third the way through a given year. Resulting

from the Ancillary Fee Directive, a new fee framework began on the September 1st. Prior to this date the

entire “Federation of Students’ Fee” was compulsory and there were no administrative overheads

charged on any other fees. As a result, student fee revenues have become far more complicated to

predict, particularly when including the 2.5% administrative overhead applied to the fees for

administered funds.

Mandatory Fees Optional Fees (70%) 2.5% Administrative Overhead

- - $273,568.88

SPRING $647,540.16 - -

FALL $1,141,816.22 $370,510.94 -

WINTER $1,018,006.08 $330,335.46 -

Total $2,807,362.46 $700,846.40 $273,568.88

Grand Total $3,781,777.74

This year, the Budget & Appropriations Committee conservatively estimates $3.78M in revenue from

student fees based on the prior academic year’s enrollment data, administered fund premiums, and

where applicable assuming a 30% opt-out rate. Actual income may exceed this target based on actual

premiums for the FY2020 and based on real opt-out data. While opt-out data for the Fall Term could

have been used to provide closer accuracy for some calculations, fluctuations in rates, increase in

student awareness, opt-ins, and the impacts of fee verification being conducted will significantly impact

projections for future terms. Therefore, the utility of using real data for fee calculations is limited; as

such a 30% opt-out rate will continue to be used for all budget planning.

Transfers Out These fees are collected by WUSA and then transferred out to a third-party service provider. This

includes the health and dental plan with Student Care and the U-Pass with GRT. The table below

identifies the total FY2019 transfers out based on premiums for each administered fund.

Administered Funds Premiums

Total FY2019 Description

Health Insurance Plan

$3,252,740.17 Transfers out are made to StudentCare, the contracted plan administrator based on claims experience/plan use. WUSA, acting through StudentCare, maintains an insurance policy which underlies the Health Plan. The Health Plan operates on refund accounting, which is an exercise in budgeting, as all finances flow back to the WUSA as


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the policy holder. Internal reserves carried by WUSA are restricted and noted on audited financial statements.

Dental Insurance Plan

$2,695,450.61 Transfers out are made to StudentCare, the contracted plan administration based on claims experience/plan use. WUSA, acting through StudentCare, maintains an insurance policy which underlies the Dental Plan. The Dental Plan is an underwritten plan on a fully insured basis, reducing budget complexity and risk. Internal reserves carried by WUSA are restricted and noted on audited financial statements.

GRT U-Pass $4,443,111.07 Transfers out are made to the Grand River Transit, Region of Waterloo, under contract for the provision of the Universal Transit Pass. GRT U-Pass is internally restricted and noted on the audited financial statements.

Student Refugee Program (SRP)

$48,357.60 Transfers out are made to an internally restricted SRP Account for support for student refugees. The fund is shown on the audited financial statements.

Legal Protection Service (estimated)

$503,095.82 A new administered fund supporting the implementation of the Legal Protection Service adopted by Referenda. Transfers-out are made to StudentCare, as contracted to administer the plan for WUSA.

Societies Fund $809,042.15 The grand total of transfers-out from the General Fund to the Societies Fund (the collection of all Societies’ accounts) estimated based on the prior fiscal year’s actuals. Actual amounts may very based on fee adjustments and number of enrolled students. Societies budgets are prepared and approved on a termly basis by the individual constituency Societies, subject to review and acceptance by the VP Operations & Finance.

Notes on Transfers Out: Estimation of Legal Protection Service Premiums Conservative estimation approaches were used; the method for premiums for Legal Protection Service

was based on the following to set a minimum expectation:

Based on previous year’s data, there are 10,183 Regular and 15,743 Co-op stream students in

Fall and 10,033 Regular and 13,094 Co-op stream students in Winter terms. Despite the program

being accessible to both FT and PT students, only FT students were used for costing estimates to

establish a base line of the total premium.

At a fee rate noted in the General Operating Budget Summary (Regular – $9.56, with double

assessment in Winter; Co-op – $17.94).

30% program opt-out rate.

Spring Fall Winter

- $97,349.48 $95,915.48

- $282,429.42 $234,906.36

- $3,464.54 $2,807.77


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- $807.30 $1,027.96

Gross $384,050.74 $334,657.57

Net (less opt-outs) $268,835.52 $234,260.30

Grand Total $503,095.82

Corporate Salaries All full-time salaries from the Federation of Students are paid in accordance with the University Support

Group corresponding with their evaluated job description. Salaries reflected an economic increase of 2%

in accordance to the scale adjustments from Human Resources and UW Staff Association.

Note that USG and JobVal are reported from current position, they do not reflect likely regrading which

is scheduled to occur by the University HR Department & Staff Relations Committee (SRC) as the Board’s

approval of the organizational restructure as recommended by the Personnel Committee.

Role University Salary Grade

(USG)

Job Valuation, 35 hrs/wk, annual (JobVal)

President - -

Vice President, Education - -

Vice President, Student Life - -

Vice President, Operation & Finance - -

General Manager 13 $107,901.65

Director, Commercial Operations 10 $83,256.94

Area Manager, Food Operations 8 $70,226.40

INEWS & Dispensary Manager 8 $70,226.40

Operations Analyst 8 $70,226.40

Feds Used Books Manager 6 $58,612.23

Math CnD Shop Manager 6 $58,612.23

Accounting Manager 10 $83,256.94

Accounting Assistant 6 $58,612.23

Accounting Clerk – Receivables 5 $53,230.05

Accounting Clerk/Receptionist 4 $48,980.96

Societies Accountant and Administrative Assistant

7 $64,277.68

Student Life Centre Manager 8 $70,226.40

Stakeholder Relations Manager 8 $70,226.40

Research & Policy Officer 6 $58,612.23

Director, Marketing & Communications 9 $76,458.40


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Marketing Specialist 7 $64,277.68



Web Design Specialist 8 $70,226.40

Digital Media Specialist 7 $64,277.68

Communications & Media Relations Manager

8 $70,226.40

Orientation & Member Transitions Manager

8 $70,226.40

Orientation Administrative Coordinator

7 $64,277.68

Director, Campus Life 9 $76,458.40

Special Events Coordinator 6 $58,612.23

Clubs Manager 6 $58,612.23

Services Manager 6 $58,612.23

IT Manager 10 $83,256.94

IT Administrator 7 $64,277.68

IT Administrator 7 $64,277.68

Web Developer 7 $64,277.68

Web Developer 7 $64,277.68

Total - $2,227,673.89

Average Value 7.45 $67,505.27 ± $10,897.93

Note: some of these roles are vacant currently and so the amount charged out for salaries in the

budget may not reflect the amount listed in this table.

These exact values are subject to change based on organizational regrading being undertaken by the

University of Waterloo Human Resources Department. Generally, based on changes expected in this

process, the costs associated with service lines (including staff salaries) can be expected to increase.


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APPENDICES Optional Fees Data Based on Fall 2019 Opt-Out data, a conservative budgeting approach was employed for a 30% reduction

in gross expenses. Despite this, opt-outs for the Fall 2019 term came below this figure at a median value

of 22.29% for WUSA Operating Fees (15.43% for Societies Operating Fees), 21.15% for WUSA

Administered Fund Fees, and 4.71% for the Orientation Fee.

While the Budget & Appropriations Committee remains optimistic for opt-out rates equilibrating in

future terms, the Committee continues to budget for an initial increase in opt-out rates as a greater

number of students become aware and actively participate in the optional fee process. In accordance

with that consideration, the Committee continues to budget for a 30% reduction to bottom lines to

ensure adequate measures are taken to account for both reductions in income from optional fee

buckets and to ensure sufficient working capital exists for the corporation to operate effectively.

Fee Name Opt-out Percent (%)

Opt-to-Pay : Opt-out Ratio (-)

Normalized Opt-out Percent (%/$1.00)

Student Refugee Program (SRP) 20.57% 0.641 19.97%

WUSA Community-Building Services*

22.29% 0.488 10.37%

WUSA Clubs Funding* 17.76% 0.867 7.08%

WUSA Advocacy - University 23.58% 0.407 6.93%

WUSA Advocacy - Government 25.12% 0.320 3.89%

WUSA Events* 20.57% 0.613 3.69%

Renison Academic Students' Council* (August Data)

16.67% 0.500 3.33%

AHS Student Society* 13.99% 1.117 2.80%

WUSA Legal Protection Service* 21.73% 0.530 2.27%

ARTS Student Society* 20.87% 0.574 2.09%

SJU Students Union* 15.34% 0.696 1.53%

ENV Student Society* 15.70% 0.728 1.26%

MATH Student Society* 11.74% 1.840 0.96%

ENG Student Society* 15.68% 1.540 0.94%

Pharmacy Student Society* 26.86% 1.231 0.77%

Optometry Student Society* 10.77% 3.094 0.72%

SCI Student Society* 10.15% 2.262 0.68%

Acct & Fin Association Fee* 14.21% 2.021 0.47%

Orientation Fee* 4.71% 4.276 0.04%

* Asterisk indicates fees on which HST is applied during fee payment.

While there is insufficient data for multi-term or year analysis for the determination of trends, the

optional fees data can be assessed analyzed through a series of key performance indicators (KPIs) which

offer compelling conclusions. While not all available KPIs employed are provided for simplicity, the two

primary analyses available are opt-to-pay to opt-out ratio for those who chose to engage in the opt-out

process in any capacity and the opt-out percentage normalized per dollar of fee.


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Remain Opted-in vs. Opt-out Eliminating those students who elected not to engage in the opt-out process at all, it is possible to

assess for the remaining students those who remained opted-in to a specific fee relative to those who

opted-out of that specific fee. This indicator is useful in aggregate to determine the total perceived value

of a fee, including students who opt-out or remain paying a fee based on dollar amount, services

rendered, services lost, or otherwise. This metric assesses the likelihood that a student pays a fee if they

are to engage in any opt-outs for that fee; for instance, for every 1 student who chooses to opt-out of

the Orientation Fee, 4.276 students actively choose to remain opted-in. For comparison, this means at

rate parity (between opt-out and opt-to-pay) if two statistically average students engaged with optional

fees, one would opt-out and the other would remain opted-in. The higher this ratio, the better the fee

performs against the rate parity (equilibrium) case.

The graph indicates a reasonably linear conclusion regarding fees. Of particular interest is that as the

magnitude of a fee get larger, the average payer tends to be more willing to remain opted-in to a fee

relative to opting-out. Albeit the spread of the data increases as fee amounts get larger as well, which

indicates there is more variance in the experience of the average payer, the trend remains reasonably

linear with a coefficient of determination (R2) of above 0.58, indicating the goodness of the linear fit to

the data set and providing reasonable confidence for the predictive capacity of the function7.

Whether a linear fit is appropriate for this data set will be determined as more optional fees data

becomes available, for now linear models offer some predictive value.

The limitation on the utility of this metric is simple: it cannot be used to draw value proposition

conclusions (e.g. estimations on perceived value-for-money) from the payers’ decisions in aggregate,

7 The R2 value is a useful statistical measure that represents the proportion of the variance for a dependent variable that is explained by an independent variable or variables in a regression model. It provides statistical measure of the precision of a model’s predicted outcomes based on the proportion of total variation of outcomes used in the model.


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because it does not exclude those who made decisions regarding opt-outs simply based on the

magnitude of the fee.

Dollar Normalized Opt-out Percentage To account for the foregoing limitations, the Committee adjusted values measured on different scales to

a notionally common scale of per single dollar. This per dollar normalization recalibrates the opt-out

rates of each as though their associated dollar magnitude is $1.00. In doing so, it is much easier to draw

conclusions as to the value proposition of the various fees, as impact of “dollar-magnitude-based opt-

out" reduces considerably. On such a scale, the lower the normalized percentage the greater value a fee

is perceived by the payer to have. For instance, the SRP Fee of $1.03, which seemingly has a moderately

average opt-out rate of 20.57% in the raw data, has the maximal normalized opt-out rate 19.97%,

indicating minimal perceived value.

This graph indicates a well-fitting hyperbolic relationship between dollar amount (x-axis) and normalized

opt-out rate (y-axis): 𝑦 = 1

𝑧 = 𝑘 ⋅ 𝑥 + 𝑏. In order to extract the useful parameters k and b, the inverse

plot is provided below:


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There is a notable outlier, marked in orange (35x,130y), corresponding to the School of Pharmacy

Society (SoPhs) Fee. Given the unique experience of satellite campus students differs greatly, and this

fee represents the only standalone satellite campus data (as Architecture and GBDA fees are coupled

with the payment of the Engineering Society and Arts Student Union fees, respectively) it has been

excluded in the second trend line shown. This provides useful prediction of the normalized opt-out rate

per dollar of fee. From the trend line shown, k = 7.785 and b = -9.1107; so, to predict a given ‘value of z’

(%/$): 𝑧 =1

(7.785⋅𝑥 − 9.1107). The product of the fee magnitude and this predicted opt-out rate provides a

means to predict a ‘total opt-out' rate for a given fee. Based on analysis, excluding outliers, the standard

deviation of the predictive index is ±1%.

The above graphs allow the extraction of predictive metrics on opt-out of fees for any fee adjustments

or budget shifts between buckets by fiscal year and how this may impact opt-outs. A further analysis

exploring how such changes shift in time (over multiple terms as a potential equilibrium opt-out rate

emerges) will be required.

Opt-ins In addition to opt-out rates, the net opt-out rate (less any opt-ins) and associated metrics, as well as

other KPIs such as ticket price payment for individual events or services access, tiered pricing, and

similar) will be useful at the end of each term to evaluate the actual success of each fee.

The below table outlines opt-ins as of the end of September 2019 for various fees. Social Membership is

predominantly held by graduate students and students on medical leave from the University of

Waterloo which wish to continue to access various services and resources while on leave (including

access to administered programs, though this may vary based on the type of opt-in, such as support for

students with reduced course load accommodations / benefits).

Fee Name Sum of Net Amount Sum of Tax Sum of Quantity


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Clubs Funding $103.17 $13.31 22

Community-Building Services $59.78 $7.68 10

Events $1,510.47 $196.15 253

Advocacy – Government $171.79 $0 8

Orientation $14,589.96 $1896.84 132

Social Memberships (full Operating Levy)

$1,773.33 $0 8

Advocacy – University $90.54 $0 8

U-Pass $17,323.96 $0 176

Total Organizational Income (sum of operating fees + administered fee overhead)

$ 4142.179 N/A N/A

Generally, is the assessment of the Budget & Appropriations Committee to continue the current

informational strategy for fees to allow students to make values-based judgements of their own accord

for the various offerings provided. This strategy has proven successful and lowest in risk, with

reasonable outcomes that would indicate values-based judgements were made on fees rather than

blanket opt-outs. This will be imperative as the organization embraces the optional fees process into the

future.


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Assessment of Trends in Financial Position This appendix outlines an overview of key metrics in the determination of trends in financial position,

defensive intervals, and an overall assessment of the working capital of WUSA, as well as their trends,

from prior years. The evaluations within this section are based on analysis of the audited financial

statements accepted by the Board of Directors each Fiscal Year. To evaluate financial position for

reporting to the Board, the Committee employed financial ratios, a widely-used measure to determine

financial health. As a not-for-profit student organization, WUSA has different expectations for its ratios

as compared to typical corporations.

DISCLAIMER: The following data is based on the prior Fiscal Year and does not necessary reflect the

current position of WUSA. As such, this information is used for retrospective analytics purposes to inform

planning, it should not be relied on as the current position of the association, which is subject to

fluctuation.

Liquidity Metrics Liquidity is the ability of an entity to pay its liabilities in a timely manner, as they come due for payment

under their original payment terms. Liquidity ratios measure a debtor's ability to pay off current debt

obligations without raising external capital. The Committee employed the following metrics, which are

described in brief:

Current Ratio: Can WUSA pay off current liabilities? ="𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠"

"𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠"

Cash Ratio: Does WUSA’s cash meet a portion of its liabilities? ="𝐶𝑎𝑠ℎ 𝑜𝑛 𝐻𝑎𝑛𝑑"


Quick Ratio: Can WUSA meet short term obligations with cash and equivalents? ="𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠" − "𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠"


Fiscal Year Current Ratio Cash Ratio Quick Ratio

2012 1.01 0.77 0.91

2013 1.58 1.02 1.50

2014 1.53 1.38 1.45

2015 1.10 0.74 0.96

2016 0.98 0.55 0.82

2017 0.46 0.25 0.34

2018 0.46 0.28 0.36

2019 0.50 0.31 0.45


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These three metrics show significant falls indicative of potential for issues with working capital. Slow

improvements in recent years show optimism that sustainable levels will again be obtained.

Activity Metrics An activity consumes resources, such as staff time or funds; it is any action taken to convert an input

into an output. In practice, activity ratios measure WUSA’s ability to convert different accounts within its

balance sheets into cash or sales. The Committee employed the following metrics, which are described

in brief:

Inventory Turnover: Does WUSA have too much little inventory? ="𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑"

"𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦"

Defensive Interval: How many months can WUSA operate with no additional funds? ="𝐶𝑎𝑠ℎ" + "𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠"

"𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠"

Saving Ratio: How much of WUSA’s surplus (deficit) goes to (is financed by) savings? =Total Revenue−"𝑇𝑜𝑡𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑠𝑒"

"𝑇𝑜𝑡𝑎𝑙 𝐸𝑥𝑝𝑒𝑛𝑠𝑒"

Fiscal Year Inventory Turnover Defensive Interval* Saving Ratio

2012 18.12 3.74 -1.79%

2013 19.04 6.06 -8.64%

2014 31.02 5.78 12.07%

2015 25.38 2.26 3.60%

2016 16.39 1.94 -11.63%

2017 16.40 1.30 -5.22%

2018 15.70 1.73 -6.75%

2019 16.46 2.23 -15.36%


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An interpretation of the savings ratio is that WUSA has been financing expenses out of savings since

2015. A contributing factor for the significant drop in 2019 is the closure of the Bombshelter Pub,

causing an immediate cease in revenues, while come expenses remained. Note this measure of

defensive interval does not include savings.

Cash Flows and General Operating Metrics Analyzed in this section are the Cash, Current Assets & Liabilities, Inventory, Receivables, Amortization,

and Revenues vs Expenses.

Cash and Current Assets continue to trend downwards though showing improvement in recent years.

Note that cash is a subset of assets. Meanwhile, current liabilities have decreased.


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Inventory has declined, which is predominantly due to the closure of the Bombshelter Pub. There was

an accelerated growth in amortization, which has recently declined, but greater review in acquisition of

capital assets will be required until a formal capital budget is developed. The marked decrease in

inventory is unrelated to the increase in liquidity experienced in the last fiscal year. The association’s

cash position benefited from the increasing receivables paid over the Spring term.

The drastic decline in revenues, expenses, and average monthly expenses is largely due to closure of the

Bombshelter Pub, but not entirely. The decline in revenues has exceeded the decline expenses by the

end of FY2019. This trend is seen to be reversing into FY2020 but requires continued attention to ensure

working capital remains stable.


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There has been a moderate improvement in cash levels. Cash building measures should remain in place

until a stable level has been reached to support sufficient working capital for all operations. The higher

receivables by year end (which have since been paid) have improved the cash position of the

organization. The cash position is significantly improved from what was expected based on FY2018 and

prior position, largely due to cost control measures undertaken by the Office of the Vice President,

Operations & Finance. Linear forecasting remains suboptimal relative to targeted performance levels,

but there is some optimism that it will again be outperformed in the current fiscal year. With the

magnitude of potential fluctuations year-over-year due to changes in opt-out rates, it is unclear what

performance may look like and there are few useful predictive mechanisms.

As with the cash position, the defensive interval vastly outperformed the linear forecast, possibly due to

measures to stem financial hemorrhage (e.g. Bombshelter Pub closure). While the highest in recent

years, WUSA should continue to stride towards a higher Defensive Interval until target levels are met.

Impacts on Working Capital Cost increases incurred due to staff salary increases, which are required of WUSA under the UWSA MoU

with the University’s Board of Governors, have not been adjusted for in fees paid by undergraduates or

other salary growth, and as such have regularly outstripped increases CPI as approved by the Board.

While the exact impact of this has proved difficult to quantify as many changes to organizational

structure, number of staff, and specific staff salaries influence these results, it is observed by the

Committee that failing to adjust for staff salary increases has resulted in decreases to service levels and

resulted in expenses outstripping revenues. It is recommended that the Board continues to approve,

subject to ratification, increases tied to staff compensation.

Background & Historical Context Historically, WUSA had significant retained earnings which put the Corporation’s Not-For-Profit (NFP)

and Tax-Exempt statuses at risk. At the recommendation of the Auditors, in order to address concerns of

the Canadian Revenue Agency respecting these statuses, the Students’ Council and/or Board of


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Directors strategically planned deficits and directed senior management to follow the Auditors’ advice

restructure all operations that may contain a profit motive. While this was strategically motivated, the

rate of expense growth was never adequately slowed resulting indirectly in the excess of expenses over

revenues that are presented in this report.

Comparators and Benchmarking The foregoing financial assessments were used to assess performance against a benchmark “basket” of

similarly positioned organizations (similar mandates, financial scale, staffing costs, etc), which included

Queen’s University’s Alma Mater Society (AMS), Western University’s University Students’ Council (USC),

University of Toronto’s Student Union, among others. These comparisons, particularly with respect to

their trends in time, represent useful indicators of performance against benchmark for the industry.

Subject to the following general disclaimer that comparisons are based on available public data,

estimates, or year-over-year averaging, the reader may take away the below comparative notes:

Liquidity forecasts are below the standard set by other student associations, and warrant

attention.

The defensive interval identifies that WUSA is not well equipped to operate with substantial

reductions in revenues relative to other student associations with larger defensive intervals.

WUSA has also been financing out of savings since FY2015, which has substantially reduced

savings levels and requires considerable attention by the Board of Directors.

Corrective Measures The Board has undertaken strict controlling measures to better position the corporation, including

directing the Vice President, Operations & Finance, and by association the Committee to budget

according to appropriate expense control guidelines (30% budget reduction targets and increases in

sponsorship and revenue generating mechanisms). In addition, the following specific items may factor

into consideration for the maintenance of adequate working capital.

The closure of the Bombshelter Pub has resulted in saving a significant annual loss.

Investment strategies: an average of $200,000 of interest/capital gains generated annually8.

SLC Space/Salary Costs being supported by the University of Waterloo via the Student Services

Advisory Committee, beginning when SLC PAC open.

Separating Capital and Operating Expenses: Opportunity to create capital improvement fund for

WUSA which will drastically help with cash flow and amortization issues.

8 Note that investment strategies are not a new initiative (rather continuation of current practices) and are subject to market forces.


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Status Report on Prior Committee Recommendations This appendix outlines the recommendations from the prior report that were met, exceeded, or are in

progress, or could not be completed and why. Of the 17 recommendations enumerated:

Eight (8) have been completed (47.1%),

Three (3) are substantially underway to completion (17.6%),

Three (3) have only marginally been undertaken (17.6%),

Two (2) have had no action or less than marginal action (11.8%), and

One (1) was rescinded by the Board (5.9%).

Adjusting for the rescinded recommendation, the Committee is pleased to report that 64.7% of

recommendations are substantially underway to completion or already completed.

Key code — Red = Incomplete/No Action Taken; Orange = In Progress, moderate action taken; Yellow =

In Progress, substantial action taken; Green = Completed (potentially recommendation for continued

review).

Budget / Portfolio

FY2019 Recommendations Actions Taken Status

General Operations

Action be taken by the Executive, with consultation of stakeholders, to either:

Reduce expenditures / redundancy in the budget to maintain current expense levels without incrementing the dues paid by members; or

Increase the dues paid by members sufficiently to account for disparity in inflation-adjusted derivatives.

At the direction of the Council, the Board oversaw reductions in superfluous expenditures and the Executives tightened budgets. Major financial controls were enacted, such as closure of the Bombshelter Pub. In total the General Fund while losing $132,600 in FY2019 reduced losses by approximately $267,400. In addition, the Board successfully recommended increases to the Fee which were implemented by the Winter 2019 General Meeting to account for some excesses of expense over revenues.

In Progress. Requires continued attention.

General Operations / Student Life

The Student Life portfolio is one of the largest budgets and grows with student demand for services. Council should gather use metrics (or other key performance indicators) to better inform future appropriations for services based on need. The Campus Life Advisory Committee should assess and review the continued need for some services which could

Council tasked the VP Student Life and Campus Life Advisory Committee to review student services key performance indicators and develop appropriate metrics, in Fall 2018. This Fiscal Year with optional fees, greater emphasis on statistical tracking of usage rates is in progress.

In Progress. Requires continued attention.


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potentially be off-loaded or should broach cost-sharing arrangements with the University

In addition, the Volunteer Centre was shut down over the Spring Term, and other services are being reviewed by the Vice President, Student Life.

General Operations / Governance

With respect to the President’s portfolio, greater support for governance operations is recommended. Recent years of underfunding and neglect have resulted in a deteriorated transition for new Councilors & Directors which decreases the organization’s effectiveness during turn-over.

Governance operations support has increased in some (moderate) capacity mostly through the inclusion of PT salaries lines for secretaries & clerks and for elections support. The larger increase in this budget is temporary for this Fiscal Year for the Long-Range Planning process, which is required.

Completed. Will require further monitoring in future years.

General Operations / Education

The Education portfolio is reasonably well placed to continue operations at current levels, but future cuts to commissioner hours paid-out or salary rates are not recommended. Generally better awareness of the value of stakeholder relations and advocacy in achieving long-term objectives should be observed.

The Committee has avoided future cuts, and increased support through earmarked fee increases for the portfolio. Commissioner hours have been increased moderately and a second phase roll-out of an earmarked increased dedicated for support of research was already approved at the Winter 2019 General Meeting.

Completed. Will require further monitoring in future years.

General Operations / Operations & Finance

The Students’ Council and Board of Directors explore tying increments to staff compensation with those required by the University under existing arrangements with the Staff Association.

The bylaws were successfully amended last year to allow the Students’ Council to ratify increases for staff compensation changes. This allows flexibility as the organization adapts to the Student Choice Initiative as well as adjustment for UW required increments to staff compensation.

Completed.


Awareness, use, and necessity of the Student Event Venue Subsidy should be assessed by the Students’ Council. Council should decide whether to continue funding this line item into the future and if so should increase emphasis on and marketing of the financial opportunity to clubs, services, and societies so it may be put to use. Otherwise, it is recommended the line be further decreased to $2,500 dollars to

Further awareness is needed, including putting information about the subsidy on the www.wusa.ca/funding page, but a greater number of groups have applied for use of the subsidy this year. The line may need to see increases in the next fiscal year pending the Bomber project.

In Progress.


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reflect real use in future fiscal years


Transfer of the costs of the Director of Commercial Operations to the Commercial Operations cost centre.

As recommended by Council during the Fiscal Year (and originally recommended by the Committee), this change has improved the honesty of the budget process and made clearer the performance of business units with consideration of senior management costs.

Completed.

Student Life Growth can only continue if the Feds Fee is comparably increased, further cuts are made, or the fee is offset by other external revenues.

The Committee saw increases to the Student Life portfolio budgets for some services and based on a novel reporting mechanism from each of the services and departments funded within the portfolio. Generally, expenditure was reduced substantially by a need for working capital and due to optional fees. Revenue increases were also observed (conservatively) in some areas. The portfolio will need to seek increased sponsorship in future years rather than increases in budget beyond CPI.

Completed.

Student Life An audit be undertaken by the VPSL and the Campus Life Advisory Committee over the next year to allow for a more detailed analysis of exactly what changes can be made to streamline costs without sacrificing the quality of the services provided.

This recommendation was broken into various components. Some components showed detailed review (including a review of volunteer appreciation and staffing structure for services), while many aspects of the recommendation were not implemented. Progress was stalled immensely by the announcement of SCI.

Incomplete. Greater action required.

Education & Advocacy

Budget growth for this department be allowed to float with undergraduate enrollment to maintain current service levels and prevent departmental contraction (viz. the Education Portfolio’s allocation of budget shall automatically scale with

Recommendation was not acted upon at the direction of the Board of Directors. It is recommended that the Students’ Council consider implementing this change to Ancillary Fee Policies to permit such a floating increase for

No action taken. Re-examination recommended to Council.


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enrollment figures to prevent further increases in the percent of departmental expenditure distributed to OUSA)

the OUSA portion of the Advocacy – Government Fee bucket.


Ignoring the prior recommendation, that the Board of Directors, at the recommendation of Students’ Council, instead choose to fund the costs of membership in OUSA by levying a fee, separate from the dues collected in accordance with Article 4 of the Feds bylaws; Note: such action would require the collection of the associated fee be expressly supported by a referendum, with at least 10% of all full members voting.

Recommendation was not acted upon at the direction of the Board of Directors. It is recommended that the Students’ Council consider this course of action in the consideration of the foregoing recommendation as an alternative, if a referendum is sought.

No action taken. Re-examination recommended to Council.


Board of Directors and Students’ Council recognize the value of advocacy and stakeholder relations as comparable to the provision of services in the attainment of long-term goals and in the long-term planning process, respectively.

This recommendation has been acted upon. Namely,

The Board approved earmarked fee increased based on the FY2019 budget report’s recommendations.

The Committee increased funding to the portfolio.

The Officers of Council applied for Advocacy & Governance funding from the Student Life Endowment Fund.

In Progress. Substantial corrective action taken. Greater attention as to the impacts of SCI necessary.


Future increases to Part Time Staff compensation or hours-paid out for Commissioners. Commissioners, as an arm of the executive in the education portfolio, are critical in the attainment of strategic objectives of the Federation and in advocacy/lobbying priorities set by the membership.

This recommendation was enacted, in addition dedicated Education & Advocacy portfolio fee increases targeting part-time opportunities were passed overwhelmingly at the Winter 2019 General Meeting. In addition, office spaces are being prepared for commissioners within the SLC.

Completed. Continued support will be required.

Corporate Overview

The Board reclassify the Marketing & Communications

Recommendation entirely adopted.

Completed.


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budget as public to be set by the Students’ Council.

Corporate Overview

The Board reclassify the IT budget should be classified as public, following a review.

Recommendation struck down by the Board in the interests of good business practice.

N/A

Corporate Overview

That bottom-line summaries of all confidential budgets, including those of Business Units be made public with summaries as to performance and operations.

Recommendation adopted. See appropriate sections of this report for details.

Completed.

Commercial Operations

That Commercial ‘Services’ be reclassified as Commercial Operations or Business Units and refocused on investment in the furtherance of the objects of the Corporation through improved forecasting models targeted toward reinvestment in the businesses as well as supporting non-commercial affairs of the corporation.

Recommendation adopted. Policy changes reflect change of focus and business planning underway to execute a full directional shift

Mostly completed. Further progress and monitoring required.


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WATERLOO UNDERGRADUATE STUDENT ASSOCATION Budget & Appropriations Committee

FY2020 Budget Report, Question & Answer Period:

1. Question/Comment: Under the Elections and Referenda category, the comments on

breakdown for several part time roles is given. However, I think that only the CRO

should be mentioned in this section. The remainder of roles and budgeted amounts with

justification should be in the section of Student Government Department for PT salaries.

Response: The Committee costed out items based on their impact and investment in

various elements of governance, Governance Events Coordination includes elections

events, and hence a portion of the role is costed out to Elections. Similarly, a portion is

costed out the Student Government departmental Budget. The remaining roles are all

pertaining exclusively to Elections & Referenda (CRO, EROs, Polling Clerks).

2. Question/Comment: Pg 28 and 88, mention of the Federation of Students in the

description of the VPSL role.

Response: Noted. A correction will be issued.

3. Question/Comment: When can improved cash flows be expected? Is there a time line

on turn around? If the budget surplus were larger would this improve things?

Response: Improving cash flow, and working capital more generally, requires

persistence and patience. The problem was created over a number of years and can only

be resolved similarly without drastic changes (some of which are being proposed in

moderation).

Timeline could be between 2-5 years for a complete recovery to 2012 levels, with

excesses being used to create the recommended dedicated funds for fee payment rate

fluctuations, contributions in excess going to Capital Program funds, and Governance

Funds.

Budgeting a larger surplus may help in the short term, but has significant costs long

term... as more cuts are made to make it possible (since the Committee cannot invent

revenues out of thing air), service-levels decline. This in turn can be a feedback loop that

impacts opt-out rates and harms future fees income. Careful balancing and multi-year

budgeting is the only definitive way with marginal impact. In addition, capital funding is

required and will offset some major impacts on the budget, freeing up resources.


Budget Q&A Responses

Document added October 29, 2019

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4. Question/Comment: Pg 32 says distribution of gross profit? is this correct or are these

the revenues?

Response: Gross Profit (also Gross Income) is reported for each portfolio where

applicable. In some portfolios there is only revenue so it is noted as Gross

Profit/Revenue, however in Student Life (as with the Operations & Finance portfolio)

there is a cost of goods/sales section, and so Gross Profit/Income represents the

Revenues less the Costs of Goods/Sales.

5. Question/Comment: CAPS seems to be a very useful, but under supported service.

What do usage rates look like? Can we expect to see some staffing support in this area

as this potentially could be a very actively used student service if it isn’t already?

Response: The Committee reached out to the VP Education for comment. Response of

the VPED: “CAPS used to be an extension of the academic affairs position until I broke it

off into a separate role last year. Thus, the budget has remained in that portfolio. Last

year it manifested as the wages being split in half. This year I secured independent

wages that are paid out of the academic affairs budget. This is why wages budgeted in

that portfolio should have roughly doubled. That is the main expense of the service. The

other part is promotional materials, which are paid out on the marketing side

accordingly.”

6. Question/Comment: Pg 45 gives a different rationale than the previous two sections for

the elimination of transition honoraria.

Response: This can be made homogenous. The reasoning is the same in theory; the

Board of Directors restructured transition honoraria so that only incoming Executives

receive it, thereby eliminating the honoraria for exiting executives.

7. Question/Comment: Can the student life portfolio invest more resources into events

that impact the greatest number of students? Has thought been dedicated to this? This

might provide the most return on investment and decrease people who want to opt-

out.

Response: The Committee recommended the department pursue similar reviews. The

Committee could not allocate any more funds without cuts to other budgets that

maintain service-levels and support resources Council and students have come to

expect, respectively. If the Student Life portfolio is to do this, it will need additional

resources, fee increases, or new revenue streams, as the Committee would not

recommend reducing budget in other elements of the portfolio or at cost to other


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Portfolios.

8. Question/Comment: Pg 54 [and elsewhere] states Gross Profit but those are just

revenues?

Response: These values are Revenues in some cases and Gross Profits in others. Where

Cost of Goods/Sales is nil, the Revenue equals the Gross Profit; where Cost of

Goods/Sales is material, the Gross Profit reflects the Revenue less the Costs associated

with generation of such revenue (e.g. acquisition of goods for sale).

9. Question/Comment: Pg 30 there is a budgeted revenue of $23,000. What is the rational

behind this figure given the actuals came $5000 in less than the budget of $25,000 last

year?

Response: This figure reflects funding from ticket sales for ticketing of events (either

two-tiered or ticketing only for non-fee-paying participants), opt-ins to the Events Fee,

and a directed emphasis on Sponsorship for the Department by the Office of the Vice

President, Operations & Finance. Last year there was no ticketing of events, there were

no opt-ins because the fee was compulsory, and there was not a dire need for focus on

sponsorship for activities. It should be noted that the projected revenues have increased

while expenses have decreased, leading to more efficient performance. The Committee

is committed to ensuring funds raised through the sale of tickets and opt-ins for this fee

will be earmarked to allowing more expenditure or greater number of events, as may be

permitted by additional revenues.

10. Question/Comment: Pg 46 mentions the WUSA staff award, who selects the winners of

this award?

Response: This is an award given to an outstanding University of Waterloo Staff

member for going above and beyond in their service to students. It is coordinated by the

Office of the Vice President, Education’s Academic Affairs Commission. This program is

planned and modelled after the Teaching Awards, but exact selection criteria are in

development by the Academic Affairs Commissioner. Please contact [email protected] or

[email protected].

11. Question/Comment: How is "Excess (Deficiency) of Revenue over Expenses" different

than gross profit?

Response: Excess (Deficiency) of Revenue over Expenses is equivalent to the net profit

or net income of the organization. However, for not-for-profit corporations that tend to

be budgeted under a break-even model, any excess (deficiency) is a surplus (loss). This


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language, in addition to language of surplus (loss), is considered standard.

It deviates from Gross Profit, because Gross Profit/Income is the excess (deficiency) of

Revenues over Costs of Goods & Sales. In short:

a. Gross Profit/Income = Revenue – (Cost of Goods + Cost of Sales)

b. Excess (Deficiency) of Revenues over Expenses = Net Income/Profit = Gross

Profit/Income - Expenses = Revenues - (Cost of Goods + Cost of Sales) - Expenses

12. Question/Comment: Can Student Services [advisory] Committee funding be relied upon

to being in the Winter 2020 term? If not what is the real bottom line? How will

Committee and/or VP Operations & Finance balance the budget in the case where it

cannot?

Response: The SSAC Funding (estimated at ~$120,000) will in fairly likelihood not be

expected for Winter 2020, depending on a debate at the November meeting of SSAC

where the item is being considered.

If no funding support is received from SSAC or the University, the budget will run an

approximate short fall of $8-10k. This means the VP Operations & Finance will be

expected to freeze budgets or make cuts during the Winter 2020 term to achieve break-

even quick the current financial position of the corporation requires.

13. Question/Comment: I’m glad to see businesses are improving, please continue to make

this a priority.

Response: Noted.

14. Question/Comment: What process does OUSA go through to adjust their fees beyond

CPI? Should any consideration be given to this? I’m concerned the VP Education has

seen a decline in support due to changes in OUSA costs. Does OUSA get buy-in from

member student unions before it adjusts fees?

Response: The Committee reached out the VP Education, Matthew Gerrits: “OUSA can

set its fees by a majority vote at its AGM [note that WUSA gets proportional delegated

representatives at these AGMs]. As a matter of practice this would be predicated by

agreement of each member that it was either ready to undertake the increase, or it was

willing to pursue the process to increase it. Fees have thus remained steady for a very

long time due to the difficulty in establishing such coordination. The eight planets are

rarely in alignment, as it were”


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15. Question/Comment: Why does Page 29 of the report still say MTCU when the

Department is renamed?

Response: Because the department at the time was called MTCU. This can be updated.

16. Question/Comment: What is the feasibility of implementing the administrative &

secretarial support recommendation regarding the VPOF’s budget (page 68)?

Response: The Committee has been informed that the Board is actively investigating

formalizing secretarial and administrative staff support. With the amount of records the

Office of the VP Operations & Finance, including General Manager, is responsible for

growing enormously in the last number of years, support in this area has been lacking. A

central support line for the Students’ Council, Board, Committees thereof, and Executive

Offices becomes more important as the organization grows in scope, size, and function.

In addition, this should be reviewed through the lens of Executive Structure review

being undertaken by the Board as well.

Note that this is possible without substantial changes to member dues, including

through appropriate overhead costing, administrative fund overhead support, and

similar, but at this point it is too early to comment on the financial implications of this

item.

17. Question/Comment: What is wrong with the Operations & Finance portfolio’s strategic

categorization and why is the VPOF making $123k.

Response: It appears on copying the table between excel and the online version of

word, an error in formatting occurred. This compounded an error, where categorization

for Research & Development and Business Operations were meant to account for

greater portion of the breakdown. This was just a coding error in excel. Thank you for

pointing it out!

The budget report will be updated for Council ASAP, but please ignore the strategic

categorization on page 53 and instead refer to:


Administration & Financial Management

$ 944,770.46 18.68%

Student Development $ 532,065.59 10.52%

Research & Development $ 212,030.96 4.19%

Stakeholder Relations $ 89,520.54 1.77%


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Business Operations $ 2,186,773.21 43.24%

Capital Improvements & Maintenance

$ 1,037,831.36 20.52%

Executive Compensation $ 54,665.59 1.08%

Total $ 5,057,657.71 100.00%

Approved:

Vice Chair Chair & Vice President, Operations & Finance


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MEMORANDUM

TO: MICHAEL BEAUCHEMIN, PRESIDENT JASON SMALL, DEPUTY SPEAKER

FROM: SENECA VELLING, VICE PRESIDENT, OPERATIONS & FINANCE

SUBJECT: CAPITAL IMPROVEMENT PROGRAM

DATE: 27 OCTOBER 2019

CC: BENJAMIN EASTON, SECRETARY OF THE CORPORATION BUDGET & APPROPRIATIONS COMMITTEE

Resulting from Item 4(c) on the Agenda of the Annual General Meeting of the Corporation, the Waterloo Undergraduate Student Association has been authorized by undergraduate students to create a capital maintenance, improvement, and expansion fee in a termly amount not exceeding $15.00, contingent on the successful adoption of a capital program by the Students’ Council. Attached to this memorandum, please find a research report (hereafter “capital program report”) summarizing the structure, governance, environmental scan, and financial compactors to other institutions for a capital program to be considered by the Students’ Council.

The Board of Directors recommended the creation of this program and the accompanying fee to the Annual General Meeting following review of an earlier draft of the capital program report attached.

RECOMMENDATION OF THE BUDGET & APPROPRIATIONS COMMITTEE

As noted in the FY2020 Budget Report, the Corporation’s “Revenue is set to exceed expenses marginally, but the predicted rates of growth in expenses and revenues are nearly the same (the trend lines are parallel).” The budget report paints a clear picture that the current cost reduction mechanisms by budget cuts, adjustments for optional fees, and similar cannot continue without serious impacts on the service-levels of the organization. The Committee noted that “[attention] is required to these trends and efforts should be taken to return to healthy working capital levels before resuming spending. If spending is needed to increase for service-levels, the corporation should be ready to adjust fees to accommodate such growth or find new sorts of non-fees revenues. Greater emphasis should be made on increasing the working capital to ensure WUSA is well placed to maintain service levels while meeting obligations.”


Appendix H - Memorandum on the Creation of a CapitalProgram

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Amortization and Operating Expenditure

As noted in the budget report, the creation of a capital program will “relieve considerable burden on the operating budget for what ought to be treated as investments in capital assets, rather than operating expenditures.” This course of action will “reduce amortization lines considerably, leading to clearer and more accountable budgeting.” Currently a significant portion of cash flow concerns, as shown in the budget report’s appendix financial position of the Corporation, are due to amortization in various departmental budgets and business budget forecasts.

This program would see substantial improvement to working capital which has been impacted over the years by necessary, although expensive, projects such as replacement and upgrades to Point-of-Sale and Accounting software, office renovations and capital maintenance, and build out of the service kitchen. This change will mean in future years, the Clubs’ Surplus will not require partial liquidation in order to meet working capital needs, as was required in this Fiscal Year (provided the budget is adopted).

Opportunity for Renewal and Improvement

Currently capital improvements account for 20.52% of expenses in the Operations & Finance portfolio, not including capital maintenance or renewal which is currently paid by the appropriate business or service unit itself. This does not include anything beyond the SLC except for the Pharmacy Campus Caffeine Dispensary. Beyond this, other departments entirely fund their capital improvement out of their operating budgets in a currently rather ad hoc, case-by-case manner. The reduction of the operating budget impact would substantially improve the operating position of the corporation as well as capital investment, leading to considerable improvements in service-levels, opportunities for significant shifts in operating approach, and a less drastic needs for year-over-year fee increases for operating expenses beyond Consumer Price Index (CPI) inflationary adjustments and staff salary increments

GOVERNANCE STRUCTURE OF THE CAPITAL PROGRAM

As explained in the capital program report (pages 14-18), the capital program would allow for the creation of a capital plan and thereafter an associated capital budget. No funds would be authorized to be spent before a plan is in place and a multiple year capital budget adopted. The governance structure of the capital program should reflect the following pathways and accountabilities:

(1) First and foremost, the adoption of the resolution on the Council agenda for the creation of a capital

program would be considered a recommendation to the Board of Directors to reconstitute the SLC

Management Advisory Committee into a student Planning, Student Space, and Works Committee

(PSW), responsible for capital planning and works, student building, spaces, and commons oversight.

(2) PSW would work with senior management to prepare a 5- to 10- year Capital Improvement Plan (CIP)

outlining the desired end goals/targets within the appropriate scope (see section below).

a. During this planning phase, input would be solicited from societies, management, business

operations, and University stakeholders, where appropriate, to inform plan development.

b. PSW would open consultation and public inquiry to Council and the students at large.

c. The resulting plan would set both a targeted outcomes and direction for capital investments

to be aimed to achieve.


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(3) PSW would submit the committee-approved plan to the Board of Directors for approval. The Board

would ensure the plan furthers the strategic long-term vision, while safe-guarding current resources,

within the scope of the Long-Range Plan ratified by Council. Once approved, the corporation would

have goals, but no funding would be appropriated to meet those goals or objectives/projects set

under them until a capital budget is developed.

(4) The Budget & Appropriations Committee would then prepare, review, and recommend for adoption

a 3- to 5-year capital budget, based on furtherance of the planned targets, renewal and maintenance

of existing capital assets, and reserve/emergency funding. The approximate breakdown for

budgeting should follow policy standards for use of the Capital Program Fund (CPF).

a. As a first step in the capital budgeting process, the Office of the VP Operations & Finance

solicits requests for capital expenses anticipated by Senior Management, Department and

Business Managers, and Societies’ Executives or Boards. Proposals for capital projects,

efforts, or assets to be included in the capital budget allocations would be reviewed and

included in a draft capital budget.

b. The VP Operations & Finance and General Manager develop a draft capital budget to

implement the CIP. All proposed budget allocations should fit within the limits of policy

standards for use of the CPF and should be justified as to how such expenditure furthers the

implementation of the CIP.

c. The draft capital budget is submitted to the Budget & Appropriations Committee, who in

turn reviews the budget. The Committee examines the proposed projects, efforts, or assets

to be funded or acquired and determines if in their estimation, they further the CIP and

appropriately reflect value-for-money regarding the expenditure of student funds.

d. The Budget & Appropriations Committee issues a capital budget with a recommendation on

adoption to Council.

(5) Council would review the Budget & Appropriations Committee’s recommended capital budget and

accept, reject, or further amend it. This is conducted in a similar manner to the operating budget for

the most part, with a bicameral budget approval process.

(6) The Council-accepted budget would then proceed to the Board of Directors for stage two of the

bicameral budget approval process. The Board would vote to approve the recommended budget.

(7) With the capital budget then approved any projects, efforts, or assets specifically identified within

the budget may be executed or acquired by the appropriate level of management, subject to

oversight by the Office of the VP Operations & Finance. Discretionary allowances built into the

budget would be authorized solely by PWC with recommendations from senior management. Capital

reserve funds within the CPF would not be permitted to be spent unless required due to capital

emergencies or considerable need; where prerequisite to their use would be a special resolution of

the Board of Directors.

In this sense, the capital program remains accountable to students in the planning, budget approval, and expensing process. Regular reporting on the fund, annual budget expenditure, and progress of capital efforts would be provided to Council and/or the Board of Directors, as appropriate.


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CONTRIBUTION TO THE CAPITAL PROGRAM FUND

The means of contribution of monies to the CPF would be multimodal. The CPF would be held in a separate account, with respect to the General Operating Fund, and considered the sum-total of a series of on-paper funds for deferred maintenance, capital renewal, capital improvement, strategic expansion, and reserve or contingency funding. The following funding modes would exist:

• Capital Program Fee — $15 fee for FT Students and prorated at 30% ($4.50) for PT Students, contributed

termly.

• Annual Operating Budget Set-aside — 1.5-3.0% on either each fee or of each department’s budget per

year would be earmarked from that department’s operating budget toward the CPF for a combination

of deferred maintenance costs, planned and within-budget asset acquisition, and potential out-of-budget

capital expenses which are approved that may, from time to time, arise, which is transferred to the

Capital Program Fund

• Close-out Reserve Funding and/or Excess of WUSA Retained Earnings — These alternative miscellaneous

revenues for the CPF would be amounts transferred into the Fund from any reserve funding which is no

longer be held for such purposes or any excesses of WUSA retained earnings beyond the CRA accepted

limits.

Note: the dollar amount of contributions will be indexed for inflation to account for maintenance of dollar value. The budget set-aside would remain at minimum static but could exceed the 1.5-3.0% target as determined during the course of operating budget development (e.g. if various departments see serious out-of-budget capital asset needs, those department’s operating budgets may reasonably see larger contributions in the future).

In reality, the organization needs approximately $20.00 termly for capital projects, however, following discussion with the Board of Directors about planning, prioritization of projects, and reasonable first steps, the Office of the VP Operations & Finance would only seek the full $15.00 termly levy authorized by the AGM.

CAPITAL PROJECT FORECASTS

The following forecasts of capital projects can be expected for renewal, basic maintenance, or needed expansion or improvement:

• Nearly $600,000 expected in IT department capital expenditure for infrastructrure upgrades expected;

• $2.3M for business spaces for capital maintenance and expansion, $350k for the Student Service Kitchen;

• $9.65M in total capital expenditures required for the Student Life Centre (SLC) over the next 5 years with

$5.4M being required for capital renewal of bathrooms, the turnkey, the Great Hall, MPR renovations,

couches and seating, and the Joint Health & Safety Committee required changes to loading dock, parking

lot, and stairs into the SLC;

• ~$150k in access control for old SLC and new SLC, required by the SLC/PAC Expansion Agreement;

• An estimated $60k annually for deferred maintenance and on-going repair for the SLC


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• $3-5M for many other student commons, lounges, study spaces, of business units that are overdue to

renewal, extended maintenance (beyond what UWaterloo offers), and improvements, based on age of

other buildings those spaces are in, their last major renovations conducted, Joint Health & Safety

Committee inspection reports/ordered changes;

• $2-4M for accessibility upgrades to the SLC and other student commons1

Reflecting on these figures, a “true” cost of capital programming where business units do not cover their expenses and no other grants, external funds, endowment support, or similar is available would see the approximately $20-30M in total capital expenditure split over 59,000 FTEs over an amortization period of 7.5 years2 yielding a termly fee of $45-68. However, with support from these avenues and the university’s participation in projects that invest in student life, a termly fee of $15-25 becomes feasible. Ergo, it is recommended Council approve the $15 termly fee.

FINANCIAL STRUCTURE OF THE CAPITAL PROGRAM FUND

While exact capital budget apportionment should be determined in a Capital Program Policy, the proposed breakdown of capital budget would reflect the following principles. Note that the following recommended ranges are considered approximate targets:

• 30-50% of the capital budget allocated according to furthering/implementing the approved Capital

Improvement Plan

• 15-25% of the capital budget allocated for infrastructure renewal, reinvestment, and capital

maintenance of existing capital assets

• 20-30% of the capital budget allocated for discretionary funding to be awarded by the PWC or in

accordance with Board procedure on authorization of capital expenditures to allow for out-of-budget

needs that may from time to time arise, that could not otherwise have been planned for.

• 10-15% of the capital budget to be held in reserve for capital emergency/contingency needs (to be held

in low to medium risk investments and/or directly in liquid assets)

• 5-10% of the capital budget held in reserve for strategic expansion and development for new major

capital works, land acquisition, student space construction, etc. (to be held in medium to high risk

investments).

Notes:

1. The earmarked funds for any planned major capital expenses of Societies that exceed what individual

societies’ capital improvement funds may be able to support, that are out of scope of the Student Life

Endowment Fund, or similar will fall under the capital budget allocated toward the approved CIP. In

addition, it should be understood that Societies are entitled to discretionary funds and support for

1 Note that some accessibility and lounge renovation expenses may be recoverable from the Student Life Endowment Fund, but the fund lacks expendable funds for this type of renewal, renovation, or improvement without dipping into the Endowment’s principal which is not recommended. 2 Most projects being 5 year periods, but some larger projects being 10 year periods.


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renewal, reinvestment, and maintenance of existing assets, within the scope of the Capital Program

Fund, which internal capital or operating funds for those societies may be unable to support.

2. “Reserves” would be held within WUSA’s accounts, while “reserve funds” would be held in investments.

The noted reserves/reserve funds for capital emergency/contingency needs and strategic expansion &

development may be split into both reserves and reserve funds depending on financial advisement from

the Finance & Accounting Department and Investment Advisors.

SCOPE OF THE CAPITAL PROGRAM FUND

The Capital Program Fund would be used to support all undergraduate student commons, spaces, leaseholds, businesses, buildings, and properties and major capital assets for those spaces; this would include: capital maintenance, reinvestment, renewal, improvement, and expansion. The Fund would support SLC capital costing as well as other student spaces on main campus and satellite campuses, where the later have seen little to no support since their inception or provision to student groups due to lack of available resources.

The fund could be used for major assets, building and space investments, technology improvements, and similar. Exact usage should be subject to a Capital Program Policy and the associated Authorization of Capital Expenditures procedure of the Board.

REQUEST FOR AGENDA ITEM

It is the intention of the Office of the Vice President, Operations & Finance, that this memorandum constitute a request for the inclusion of agenda items on the 3rd of November, 2019 regular meeting of the Students’ Council relating to: approval of the Capital Program, to permit the development of the Capital Improvement Plan and thereafter a capital budget. Please include the following resolution on the Council Agenda, to be supported by this Memorandum and its attached capital program report:

Be it resolved that the Students’ Council approves the creation of a capital program, as presented in the attached Memorandum and Capital Program Report of the Office of the Vice President, Operations & Finance.

For further information, please contact [email protected], call 519-888-4567 ext. 33880, or visit SLC 2118M.

Thank you for your attention,

Seneca J. Velling, B.Sc. (He/Him)

Vice President, Operations & Finance Waterloo Undergraduate Student Association, University of Waterloo


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Research Report: WUSA’s Capital Improvement & Expansion Fund Requested by Seneca Velling, VP Operations & Finance

Prepared by Aisha Shibli, Research & Policy Officer

Reviewed & Edited by Seneca Velling, VP Operations & Finance

Definitions

Capital Fee: A charge incurred by students annually or per term for the purpose of supporting

capital improvements, expansion, maintenance, or similar.

Capital Budget: Used to evaluate potential investments or expenditures for specific projects or

purposes. The capital budget outlines a list of approved projects that further the overall capital

plan, in turn appropriating funding for those projects. When a capital budget is being drafted, the

business must determine whether it makes sense financially to acquire a specific asset or to

pursue a new project. The capital budget determines the allocation of money for the attainment

or maintenance of fixed assets or capital items for the upcoming year’s spending plan.

Capital Expense/Expenditure: “An investment in the business. It is an expense incurred when a

business spends money, uses collateral or takes on debt to either buy a new asset or add to the

value of an existing asset with the expectation of receiving benefits for longer than a single tax

year. Capital expenses are recorded as assets on a company's balance sheet rather than as

expenses on the income statement” (Majaski, 2019). Typically, it is defined to be an item in

excess of $5000 which lasts upwards of 3-5 years, however for the constituency societies, capital

expenses constitute items worth at minimum $1000, lasting at least three years.

Capital Program/Plan: A plan for capital expenditures that normally extends five years and

informs the capital budget.

Capital Improvement Program: Composed of two parts, which includes the capital budget and

capital program.

Operating Expense: “Expenses incurred during the course of regular business, such as general

and administrative expenses; operating expenses are part of the day-to-day operation of a

business” (Majaski, 2019). All operating expenses are recorded on a company's income

statement as expenses in the period when they were incurred.

Purpose of a Capital Improvement Plan

A capital improvement plan (CIP) is a multi-year project or scheduling of public improvements

and replacements of physical assets. It is a working document that requires an annual review to

reflect the changing needs and priorities of the organization. Capital improvements generally

refer to physical expenditures such as buildings, equipment, or public infrastructure. The CIP

includes “the description of the proposed capital improvement project by priority, a year-by-year

schedule of the expected funding of the project, and an estimate of the costs of the project”

(Centre for Land Use Education, 2008).


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In most student associations, the annual budget and the capital budget for the following year are

developed and adopted simultaneously. Where an operating budget reflects an organization’s

financial activities for the following year (such as how much revenue it may expect from what

sources and how much it expects to spend on its operations), the capital budget focuses on an

organizations financial position, such as its assets, liabilities, targets and goals (Hamilton-Foley,

2009). The capital budget specifies projects and appropriates funding for those areas, however, it

is important to note that funding sources for the subsequent years are not approved until the

annual budget is developed and legally adopted for those years.

CIPs are developed for a variety of reasons, however, the three main categories of CIPs include:

attainment of land for a public purpose (e.g. park), the purchase of equipment (e.g. computers),

or the construction or renovation of facilities (e.g. building) (Francis, 2016). Capital

improvement plans are tangible and visible statements of where an organization is now, what it

should look like in the future and what is required to get there. If appropriately prepared, CIPs

can shape an organization’s credibility, value, and legitimacy (Economic Development and

Capital Planning, 2018).

Below are reasons why organizations reject CIPs:

- May commit them to a future or unforeseeable debt

- May lock an organization into projects

- May not be flexible as years pass

- May cause higher or unforeseeable rates to support future replacement

Below are reasons why organizations may develop CIPs (University of Tennessee, 2019):

- CIP creates an orderly and systematic planning for the financing of capital improvements

- Allows for a more in-depth consideration of hidden costs which affects the operating

budget, and in turn can reduce year-over-year operating expenses

- By identifying future needs, CIP may save an organization money

- May promote financial and fee rate stability in the long-term

- May provide an organization security and stability, and cuts expenses

- May provide stable payments and tax rates in the long-term

- May allow organizations to spend money wisely, rather than paying top dollar during a

potential crisis-decision process

- May eliminate unforeseen or poorly planned capital expenditures

The Structure of a Capital Improvement Plan

CIP informs the public about the future of the improvements and directs how the organization

plans to move forward in the years ahead. The following steps are generally involved in

preparing a capital improvement plan for businesses and/or organizations:

1. Governance Structure

One of the first steps in preparing a capital improvement plan requires appointing a committee to

oversee the process, development, and implementation of the plan. The committee must not only

clearly distinguish between the organization’s operating expenses/budget and the capital


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budget/expenses (CIP), it must also determine for how long to plan the capital fees into the

future.

2. Identify, Evaluate, and Prioritize

In this step, the designated committee must identify needs, review, prioritize, evaluate, and select

their capital project based on a number of criteria including: project demand, the conditions of

the facility or equipment, an estimated cost to replace all physical items, determining the

expected life span of all items, the return on cost investment, cost savings, social impacts, legal

concerns, etc.

Once determined, the committee must not only identify the projects, but also rank the projects in

priority. Anticipating repairs, improvements, and adjustments, and determining the cost required

and the approximate timing of the expenditure is essential for establishing a CIP. A classification

and explanation for the capital project expenditures is determined in this step.

3. Financial Planning and Analysis

Once the project is identified and prioritized, the designated committee creates a spreadsheet

containing the organization’s planned asset purchases and the proposed list of improvements,

including those of its affiliated or subsidiary divisions. From this list, the committee projects the

next five to ten years, or more, calculating when the organization will incur costs. Due to

increasing costs, it is recommended that the committee include an inflation percentage on the

spreadsheet to ensure costs are covered in the future (Economic Development and Capital

Planning, 2018). It is important to note that when analyzing the financial capacity of the

organization, the revenue required to cover expenses must be calculated and the impact on

student fee rates must be assessed. Budgeting higher for the capital projects for the future is

critical for the future planning and budgeting of an organization (Majaski, 2019). Additionally,

organizations often budget for unforeseen repairs (or maintain an emergency capital reserve

fund).

4. Project Preparation and Analysis

According to the Centre for Land Use Education (2008), a CIP draft typically includes a list of

projects by “funding year, project and scheduling details, and financing sources including total

expenses”, and if required, “detailed maps, photos, graphs, timelines and other illustrations may

accompany the plan.” In this section, the committee justifies their capital project.

5. Review and Adoption Following public and internal review and revisions, the appropriate committee or body adopts

the CIP and capital budget simultaneously.

6. Measuring, Monitoring and Reporting

To measure the success of CIP, the committee compares the budgeted CIP to the actual work

completed to ensure the projects are being done on schedule. The designate committee or

financial officer “regularly monitors the projects’ financial and project activity” and provides a

report on the project status and activities externally for the public and internally each year

(Economic Development and Capital Planning, 2018). Providing the status of the project keeps

the public informed and allows the organization to scrutinize the capital expenditures and make

future changes if necessary. Information such as the progress on key project milestones, funding


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commitments, the percentage of the project completed and the percentage of the budget used is

provided in the report ((Economic Development and Capital Planning, 2018). Publicizing the

report allows future financial officers to not only provide a new perspective, but to ensure the

organizations fiscal responsibility is met.


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Environmental Scan of Student Associations’ Capital Budgets

The following questions were asked to the student union’s Vice President of Operations and

Finance, or equivalent:

1. How was your capital budget developed? What does this process look like?

2. How does your organization structure the capital fee once the fees have been collected?

3. What is this fee going towards? (e.g. Improvements or renovations to physical assets, or

accessibility projects).

4. Given the MTCU’s Ancillary Fee Guidelines/Student Choice Initiative, are there any

portions of your current fee that would need to be optional and/or compulsory?

5. What did your capital process look like before the MTCU/SCI announcement?

6. Who oversees the capital fee or fund in the governance structure of your organization?

Western University Students’ Council

Declan Hodgins, Secretary Treasurer (Board of Director)

Governance Structure

According to the WUSC’s FAQ sheet, the student union “never had a formal capital plan nor has

it had any form of informal plan or process pertaining to the purchase of new capital or the

maintenance of existing capital” until Students’ Council required the organization to develop a

capital plan in 2016 (Western University Student’s Council). This required all departmental

managers of the organization to assess their “needs” and “wants” for the next ten years (view

Appendix A for a detailed background on the organizations capital plan).

According to the WUSC’s Operating and Capital Budget Approval Policy and Procedure, the

President and General Manager, and their delegates, develop a three-year operating budget and a

ten-year capital budget, however, Declan Hodgins, Secretary Treasurer of WUSC, says that in

reality, a Board budget committee consisting of the President, the Secretary Treasure, and the

Senior Manager develop the capital budget for the following years. The committee aligns the

capital budget with the organizations Long-Term Plan and ensures the capital plan’s priorities

are developed in conjunction with the annual/operating budget.

The members consult with other student members to develop the budget. Declan mentioned that

the budget is on a cash basis, and that while the members follow the internal procedures when

developing the budget, it looks different publically. Once the budgets have been reviewed by

Council, Council then determines if the capital plan’s project priorities are adhering to the

organization’s strategic plan. While Council approves the entire budget set forth (both the

corporate and capital budget) once Board has reviewed it, the Board must have final approval

given its fiduciary responsibility to the organization. Once the capital plan has been approved, it

is up to the Executive Committee to approve the projects in principle.


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When asked how WUSC’s capital budget was developed and if there was a particular process

that needed to be followed, Declan responded: “With the SCI, our capital process has changed

somewhat. While we previously charged a general capital fee, we now integrate capital fees into

our fee buckets. That is the principal source of capital for our organization. As part of our annual

budgeting process, we build the year's capital budget, which allocates capital budgets to

departments. We also include big ticket items, like renovations, directly on the capital budget.”

Both budgets are reviewed and updated on an annual basis.

Mandatory v. Optional Fee

During our telephone conversation, Declan explained WUSC’s capital/facility fees in further

detail. He said that WUSC has a mandatory student building fee that costs students $124.53/year,

costing nearly $1.7 million for the lease they pay to Western University. And of this cost,

students are charged $60 each. Declan further mentioned that $770,000 comes from their

operating costs for their department; this cost covers items such as corporate administration and

insurance costs, amongst other costs. When discussing WUSC’s capital budget, it was noted that

a $35.78 capital fee is charged to students for the 2019/2020 year. Declan said this is how

WUSC funds their capital budget.

Capital Projects

Declan stated that the WUSC’s capital budget is composed of two key components: the first

consists of a large part of the capital budget that goes towards business areas (for example,

managers are given autonomy within their department. If a manager received $75,000 towards

office equipment, they may use that money towards whatever equipment is needed); the second

consists of specific strategic initiatives that need to be funded (for example, WUSC renovated

their ‘Mustang Lounge’ and to date, they are currently paying $400,000 a year in loan payment

because this particular renovation was a multimillion-dollar project. WUSC decided that the

lounge was a strategic initiative, and their next project is focused on renovating their club space).

MTCU’s Ancillary Fee Guidelines/Student Choice Initiative

This year, WUSC, like many other student unions, are in a state of ambiguity. WUSC has

budgeted their capital/facility fees for the next three years, however, their five-year budget plan

was developed in 2016. WUSC does not have a capital budget finalized for this year due to the

Student Choice Initiative (SCI). During the 2017/2018 budget period, WUSC total

capital/facility revenue was $980,453.66 (view Appendix B for WUSC’s full capital budget),

which consisted of only 4.4% of the USC fees.

Given the Ministry of Training, Colleges and Universities’ (MTCU) Tuition Fee Framework and

Ancillary Fee Guidelines, WUSC has decided that their capital/facility fee is compulsory. This

means that students are unable to opt-out of the capital fee. Declan states that WUSC’s student

building fee is a mixed fee of lease payments, capital fees, and operating costs of the buildings,

which includes building services, security, insurance, amongst others, thus the capital fee is non-

optional. Declan confirms that there are no real changes to the capital fee after the announcement

of the Student Choice Initiative.


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Brock Student Union

Robert Hilson, General Manager (Staff)


BUSU has a particular process that is followed when approving and adopting the upcoming

year’s capital budget. Their capital fund is developed in conjunction with their Memorandum of

Understanding and is collected annually from students.

During a telephone conversation with Robert Hilson, the General Manager at BUSU, he stated

that the organization proposes a three-year capital budget, however, the in-year capital budget is

drafted and approved every year by the Board of Directors. He mentioned that approving capital

plans is a three-step process when any capital request comes through to the Board:

The first step in the process is that a call for capital requests is announced by the General

Manager and the Vice-President Finance and Administration (VPFA). A capital request can be

submitted by a staff member, an executive, a board member(s), or a council member(s). This

typically takes anywhere between four to six weeks to allow members to consider what they

would like to see included in the capital fee for the upcoming year only (a three-year request is

not required, just a general budget). The General Manager and the VPFA place all requests in an

Excel document and provide their own professional input. Once completed, both the VPFA and

the General Manager present the document to the Board’s Finance, Planning and Sustainability

Committee, which is composed of the VPFA, four BUSAC councilors, two student-at-large

representatives, the General Manager (ex-officio), and the Chair of Board (ex-officio). The

committee provides first approval of the draft budget prior to being sent to the Board of

Directors. The committee reviews the organization’s quarterly financial reports including a

running total of capital expenditures prepared by the General Manager and the VPFA.

Occasionally, the General Manager invites an accountant or a financial expert to the committee

meeting as a resource member to provide financial insight. Once the committee has finalized

their review, the capital request goes through a first reading at a Board meeting. During the first

reading, Board members have the chance to review, analyze, and question the request brought

forward. Members of the Board are also able to provide recommendations and minor changes

prior to the second reading.

The second step of this process is the second reading, where Board members once again discuss

any changes made. When discussions have been exhausted, the third step is the approval and

adoption of the capital plan. Robert mentioned that the capital plan is very student led and that

he, as the General Manager, simply manages the process.


All fees are mandatory and are based on a per credit basis. This means that based on the number

of credits a student has registered for the term, BUSU will charge them for the number of credits


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they are taking (which translates to a specific fee). If a student registers for both terms with a full

course load, they will be charged based on this criterion.

Capital Projects

The capital fund is used to support smaller capital projects, existing space renovations,

equipment repairs, and necessary facility updates, which include but are not limited to the

following (Brock University Students’ Union Capital Fund, 2017) (view Appendix C for the full

list of restricted and unrestricted portions of the capital fund):

a) Capital Expenditures and various loans or debts associated with Capital Expenditures

b) Repayment of internal BUSU loans and debts

c) Joint ventures and other collaboration and partnership projects with Brock University

d) Equipment expenditures, including but not limited to; the BUSU Office, Isaac’s Bar and

Grill, Skybar Lounge, General Brock, Union Station, The Collabratorium, The Student

Alumni Centre, The Hamilton Campus Student Lounge

e) Projects and expenditures around the expansion, revitalization or reutilization of the

Student-Alumni Centre

f) Projects and expenditures around the planning, creation and development of the New

BUSU Building

g) Any and all provisions outlined within the Deferred Maintenance Memorandum of

Understanding (2014)

h) Any other usage that the approving body deems to be in the spirit of the fee collection

BUSU not only has a capital fee, they have a deferred maintenance fee which costs students

$1.50/term. The deferred maintenance fee is strictly reserved for renovating the Student-Alumni

Centre building in which BUSU operates. This includes the roof, floors, windows, and the

painting, to name a few. The deferred maintenance fee is separate from the capital fee.

Robert stated that when developing the capital budget, the Board asks what is considered

‘capital’ under the accounting principles under the Not for Profit Corporations Act for non-

shared capital corporations. Tables, chairs, small renovations, and the hiring of consultants or

architectures (something that can be capitalized) are considered. He says that if something can be

capitalized, BUSU, like other not for profit organizations who have capital budgets, will adhere

to it. Currently, BUSU is collecting capital on a number of projects including: the renovation of a

Subway franchise that BUSU owns, purchase of a freezer for a Booster Juice that BUSU owns,

and furniture for the BUSU reception area for accessibility purposes, to name a few. Robert said

the organization spends roughly $175,000.00 every year on capital.

Both the General Manager and the Vice-President, Finance & Administration are responsible for

reporting the usage of the capital fund. The report includes:

- Summary of scope of work/project

- Amount approved (including any increases to original funding)

- Amount spent


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- Confirmation that appropriate filings have been completed with the accounting

department or relevant departments within BUSU, University or municipality


Given the MTCU’s Ancillary Fee Guidelines, Robert explained that there are no optional fees.

He mentioned that they cannot un-capitalize their fee, as it is tied to their Memorandum of

Understanding. BUSU’s auditor is required to ensure restricted fees are only used for that

purpose (for example, the organization cannot use it towards a student club, which is not

considered capital). When asked what the organization’s capital process looked like prior to the

announcement of the SCI, Robert said they have always adhered to their status quo and will

continue to do so.

University of Toronto Students’ Union

Arjun Kaul, Vice President, Operations

(have not spoken to Arjun – the information below is directly from the

UTSU website)


For the first time in UTSU history, the organization recently developed, approved, and begun

implementation of a capital budget for the 2018-2019 fiscal year. Like other student unions,

UTSU uses accrual-based budgeting and recording methods. This means that the organization’s

budget can largely be based on the expenditures incurred the previous fiscal year.1

The governing body of the organization, the Board of Directors, oversees the UTSU’s budgetary

planning and control processes. At the beginning of every fiscal year, annual preliminary and

operating budgets are implemented subject to approval from the Board (University of Toronto

Students’ Union, 2019). The preliminary, operating, and revised budgets are prepared by the

Finance Committee, a Board committee, that consists of the President, the Vice-President

Operations, one Director from Division I, one Director from Division II, and four additional

Directors from the Board, to Board for approval on the advice and recommendation of the Vice-

President Operations and the mandate developed by the Planning and Budget Framework

(University of Toronto Students’ Union, 2019). The Finance Committee has oversight of the

planning and budget activities, including the short-term and long-term financial planning of the

organization. Once the Operating Budget is passed, the Board of Directors receives reports on

how much has been spent each month during their regular meetings.

1 “Accrual based budgeting is an approach to budget preparation where the organization recognizes the financial

impact of an event as it occurs. That is, a transaction is recorded in the time period when the activity causing the

transaction takes place. The alternative, cash-based budgeting, is an approach where the organization would

recognize transactions when the cash is received or paid out, which is often different than when the event actually

happens. Using an accruals-based approach allows the organization to confidently rely on the previous year’s actuals

when developing the next budget.” University of Toronto Students’ Union, 2019.


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For recording purposes, the Finance Committee creates a publicly accessible list of all primary

and secondary accounts appearing in the Operating Budget. The list includes a brief descriptions

of the categories of expense charged to each account.


The capital fee is compulsory for all undergraduate students. For the 2018-2019 year, UTSU

charged students a non-refundable fee of $1.00 per term under the Accessibility Resources Fund

(Capital Levy). This fee is only used to fund capital improvement projects that make the UTSU

building and student spaces on campus more accessible. Further, $10.24 was charged to

undergraduate students in the Fall term, while $14.25 was charged in the Winter term under the

Students Commons Fee (Capital Levy) (view Appendix D for the UTSU’s 2018-2019 capital

budget). Both fees are non-refundable.

Capital Projects

In April 2018, the UTSU contributed $250,000, via the Accessibility Resources Fund, to the

construction of accessible building features on Front Campus inside the University of Toronto’s

Landmark Project.

The Students Commons fee is used to pay for the Student Commons’ initial renovation, ongoing

maintenance costs, future renovations, and license fee. This fee has been collected since 2008

and is due to expire after 25 years. The Student Commons recently opened in January 2019 and

is the first ever student-run centre opened on the U of T St. George Campus. It is planned to be a

hub for all things student life – a gathering place for student societies and clubs, a haven to

decompress away from the buzz of the classroom, and crucially a space that students can make

their own. The Students Commons fee heavily relies on financial forecasts models based on

similar operations in the sector. According to the UTSU website, “the ongoing and on-time

expenses associated with the launch of the building have been anticipated by UTSU

administrations over the past several years. Where possible, unnecessary and inefficient expenses

have been (or are being) reduced and new sources of revenue have (and are) being developed.

However, the full realization of these new revenue streams will take several years. As a result,

the UTSU has planned for a series of deficits over the next several years. Also considered are

inflationary increases, organizational priorities, and the UTSU’s ongoing contractual obligations.

This allows us to budget for cost increases at stores and with vendors, as well as to budget for

increases, such as staffing costs, that increase well beyond the rate of inflation” (University of

Toronto Students’ Union, 2019).

According to the University of Toronto’s Students’ Union (2019), given the opening of the

Student Commons, “it has become increasingly important for the organizations budgeting and

reporting to be continued in departments, reflective of the organizations structure. Whereas

previous budgets reported revenues and expense by natural classification, this budget presents

revenues and expenses by their function to the organization.”

For the future, it is hoped that the capital fees contribute towards the installment of automatic

light sensor technology, such as the Robarts retrofit, and the vermicomposter/electric composter,


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which is used to facilitate an organic waste program. The UTSU has a particular interest in

potentially commissioning these projects in the UTSU building in the near future.


N/A

Laurentian University Students’ General Association

Josh Bailey, Director of Finance (Staff)


Several years ago, SGA’s capital fee was enacted via a referendum with the sole purpose of the

proposed fee going towards the building loan in which SGA operates. Prior to the referendum,

SGA worked with the KMPG, a management consulting group to discuss the options for

enacting a capital fee after they signed into a contract with a financial institution to loan the

building.

SGA’s “capital fee is overseen by the association,” says Joshua Bailey, Director of Finance for

SGA, however, the organization’s reserve accounts are overseen by their Board of Directors, as

per their policies. After the referendum, it came down to the Board’s decision regarding what

this fee would look like.


The capital fee is compulsory for all undergraduate students registered with the SGA. To date,

full-time undergraduate students are charged $114/term, while part-time and online students are

charged $10 per credit course.2 This amount has remained the same since the adoption of the

referendum and will continue to remain the same until the building loan is paid off. Once the

loan has been paid off, Joshua says that SGA is unsure what the cost charged per term will look

like.

Capital Projects

To date, the capital fee goes towards SGA’s newly constructed student centre, and “is applied

directly to the loan.” Joshua further mentioned that SGA “went through a bidding process for our

2 As of May 1 2019, the Laurentian Association of Mature and Part-Time Students (LAMPS) dissolved. All students

who were registered with LAMPS have been transferred to the Students General Association (SGA) or Association

des etudiants francophones (AEF). Due to this change, the SGA implemented a fee on part-time and full-time

distance education students.


214

loan and chose the best option for the association.” He also specified that the organization does

not “have any fees at the moment that coincide with purchasing furniture or anything of that sort.

We use our tenants rent for such items. That being said, since this is the start of our building we

will be adding additional capital fees that would be tied into our administrative. For reserves,

such as saving for the time when we will need to buy furniture, this would come from multiple

sources. A portion would be new opt-in fees, another from the main capital fee.” While SGA

does not have contingencies in place for the building, they will be looking into this in the near

future. In summary, the capital fee does not go towards any furniture, but only to the building

loan.


Prior to the MTCU’s Ancillary Fee Guidelines and the SCI, Joshua said SGA “had the main

capital fee that our students were contributing to, but we were going to be creating an additional

fee for the sole purpose of capital improvements and the "just in case" reserve contingency

accounts. Now with the changes we can no longer do this as effectively.” With the

announcement, Joshua notes that with everything coming up, the SGA must wait until next year

to determine if the fee would be considered optional or compulsory into the future, as SGA’s

focus is currently on the sustainability of the organization and being able to operate this coming

year, however for now the fee is assessed on a compulsory basis as it classifies as a building and

property fee under the MTCU’s directive.

McMaster Students Union

Alexandrea Johnston, Vice President Finance (Executive)


Generally, the MSU Executive Board is responsible for preparing the MSU’s general budgets for

final recommendations to the Student Representative Assembly (SRA) and expend and re-

allocate funds within any MSU budget category, whereas the SRA is responsible for approving

such fiscal requests throughout the budget period. Within the SRA, the Standing Committee on

Finance works closely with the Vice-President Finance to review the MSU finances, and the

Executive Board and the SRA work closely together to review and adopt the organization’s

finances.

Alexandrea Johnston, Vice President Finance of the MSU said: “Our process for capital

budgeting is for fixed assets and leasehold improvements. Funding is from our own resources

and there is an approval process for all capital purchases. Departments are asked to review their

current fixed assets at the annual budget time in January to see if anything needs to be

replaced/added/improved. Following this, they then submit their requests for the upcoming fiscal

year, along with the quotes for the cost of the items. Our student government (SRA) approved


215

the requests and purchases made throughout the fiscal period. There are certain thresholds for

approvals that require X amount of quotes and it dictates which body can approve what.”

When asked if the MSU collects any fees for the faculty societies or student groups on campus

(e.g. collecting fees for student spaces for societies), Joshua Marando, President, said: “We do

not collect fees for faculty societies, that is done through the university. Capital improvements to

student building are covered in our essential student building fee” and Alexandrea said: “The

MSU administers a club’s department which is through our levy fee, however, all faculty

societies have a separate levy fee and are separate from MSU.”


When asked if there was anything that qualified as mandatory vs compulsory for their capital

fees, Alexandrea said: “We also do have an essential $13 fee as a building fee which is for

capital enhancements to MSU owned space as we jointly own the student center on campus.”

Capital Projects

To date, MSU’s capital fees goes towards the replacement of physical assets such updates to the

building in which MSU operates in and other assets such as furniture, desks, and computers.


N/A

Wilfrid Laurier University Students’ Union

Shannon Leest, Vice President Finance and Administration (Executive)

Shannon Leest, Vice President Finance and Administration of WLSU said: “Our Students' Union

has restructured our SAC fee into four mandatory fees (Campus Safety, Health and Wellness,

Academic Support, and Recreation) and three optional fees (Campus Clubs, Social

Programming, and Provincial Advocacy), two of which students are able to opt-out of each

semester. Our required fees build the framework for our programming and services to run and

then the optional fees pretty much dictate what we will do our programming with for the year.

We had to adapt our budgeting process in light of SCI as there is a lot of unknown so we did a

summer budget and fall/winter budget for each of our committees so we could propose accurate

numbers to our Board of Directors in terms of revenue and be able to project a balanced budget

for the year. The Vice Presidents of our organization oversee our funds and the Presidents'

management of the budget is held accountable by the Board.”


216

Recommended WUSA Governance Structure


Given the environmental scan of student unions and considering the Board of Directors and

Students’ Council bilaterally approve budgets and student fees, it is recommended that the

general oversight of a capital budget lie under WUSA’s Board of Directors and/or the Budget &

Appropriations Committee.

WUSA’s Board of Directors make operational management decisions relating to the financial

high level organizational strategy and planning of the organization, including but not limited to:

a) Approving the annual budgets of the Corporation

b) Reviewing the finances of the Corporation, including the annual audit

c) Overseeing the strategic direction of the Corporation

Capital budgeting involves very large expenditures, and it is recommended that the Budget and

Appropriations Committee oversee the planning and development of the capital budget, and

make the evaluation as to whether the investment in assets is worth their costs when

implemented. The Committee should ask the following questions:

a) What are the benefits of the proposed capital project?

b) What is the total cost for both the capital and operating expenses? Is there year-over-year

savings in excess of the upfront capital costs and if so, over what time period?

c) Is this capital project acceptable to the students?

d) Are there legal requirements that need to be met?

e) Are there any implications on the furtherance or completion of the Board’s capital

improvement plan?

f) How will the capital project be monitored if funding in the capital budget is approved?

The committee must also determine the projects or initiatives to be funded based on a Board-

approved capital improvement plan, including but not limited to the following:

a) Review the terms of reference and project governance

b) Alignment with the capital improvement plan and with WUSA’s Long Range Plan

c) Strategic importance of the project to meet the organizations desired outcomes

d) Consideration of Management’s prepared timetable or schedule for completing the

project

e) Consideration of the project’s engagement of stakeholders and conduct of consultations,

including plant operations, WUSA departments, Societies, and SLC Management


217

Committee in assisting in the development of recommendations to the Board regarding

capital expenditures for the next five to ten years and preparing an inventory of existing

facilities

f) Establishment of funding based on project priority, as outlined in a Capital Improvement

Plan

g) Determination of the status of previously approved projects, if any

h) Assess the current financial capacity and preparation of financial analysis

i) Recognition of appropriate legal constraints

j) Ensuring reliability and stability of identified funding sources

k) Project risks, including execution risk, which may impact the desired level of financial

commitment

l) Scope of project and appropriate level of planning commensurate with the funds sought

in the budget

m) Reviewing and monitoring the financials of all capital expenses or expansions, subject to

general review execution of the capital projects outlined in the capital improvement plan

n) Issuing of financial recommendations to the Board or the appropriate committee thereof

charged with development, monitoring, and amendment of the capital improvement

program

The Budget & Appropriations Committee should plan for and prepare a schedule of fee

adjustments for internally restricted capital fund fees based on the multi-year capital

improvement plan and annual updated. The committee should regularly plan for inflationary

adjustment between 1-5% in consideration of such actions. Recommendations for the period of

the Capital Improvement Program should be included in the approved capital budget.

For the appropriation of funds either through the capital budget process or as an extraordinary

expense approved by the Budget & Appropriations Committee, the following steps are

recommended to assist the Board and the Committee in developing a plan and budget:

a) The Board/Committee should conduct an assessment of desired or necessary projects that

are likely in the next ten years; management will be solicited for items that require

acquisition, improvement, or replacement

b) Estimate the total cost of such items over 5-10 years

c) Build a fee using that number, spread over the 5-10-year scale, building in an extra 25-

40% for additional discretionary spending as time progresses, and an additional amount

to contribute to a “capital emergency” fund

Define the

Scope of the CIP

Identify and

Evaluate

Prioritize CIP

Projects

Develop the

Budget

Create a Budget

Schedule

Adoption of the

CIP/Fees

Measure and

Monitor

Report Yearly

Findings

Update CIP

Yearly

Board or Committee thereof Budget & Apps Committee Both


218

The projects from step a) become the first capital improvement program for the next 5-10 years,

depending on what is sought, with a review being conducted every 2-3 years (five-year model) or

4-5 years (ten-year model).

Further, a policy and/or procedure on the capital budget process outlining detailed practices and

requirements for the capital fee, capital improvement program and planning, expenditure

approvals, and similar must be adopted. The policy may outline the appropriate definitions, what

the fund will be used for, the preparation of the plan and budget, access to the capital fund

(restricted and/or unrestricted portions of the fund), and reporting fund usage.

Given changes to ancillary fee structures, the recommendation of the auditors that compliance on

budgets be done by the Budget & Appropriations Committee on behalf of the Students’ Council,

and expansion of requirements for the Committee, it is recommended that:

Council Procedure 5, Budget and Appropriations, be reviewed by the committee and

reformatted into a policy that binds the entire corporation and sets a uniform standard for

budget processes and mechanisms

The Budget & Appropriations Committee be re-constituted formally as a joint committee

of the Students’ Council and Board of Directors, given the changes in government policy

and the directive from the Board on the preparation and review of budgets, including

restricted budgets

That Board procedures, including Procedure 6, Budget, be reviewed and amended to

better reflect changes to the above

As such, the following governing documents may require a review:

Board Procedure

a) Authorization of Capital Expenditures, #8

b) Fee Increases, #13

c) Budget, #6

Council Procedure

a) Budget and Appropriations, #5

Further, it is recommended that the SLC Management Advisory Committee (SLCMAC) be

restructured into a committee responsible for planning, student spaces and buildings, and works

and formally constituted in the procedures of the Board of Directors.


Based on the student association environmental scan, it is recommended that WUSA’s capital fee

is compulsory, regardless of the number of credits students enroll in. At the discretion of the

Board, the fee may potentially merit prorating for part-time students.


219

Capital Projects

As space managers of the Student Life Centre (SLC), the Student Life Centre Operation

Agreement states that the organization is responsible for maintaining, replacing, and disposing of

the Chattels (tables, chairs, desks, and shelves), as necessary. From time to time however, such

activities are at the expense of the organization without the necessity of obtaining consent from

the University of Waterloo (Student Life Centre Operation Agreement, 2013). Repairs,

replacements, adaptations and renovations to the building, such as the roof, electrical and HVAC

systems, building systems, building components, site components and infrastructure is borne by

the University of Waterloo (Student Life Centre Operation Agreement, 2013). Further,

televisions, security equipment, Plant Operations equipment, IST equipment and fixtures owned

by the University but located in the SLC are under the control and management of the

University3, and thus must be excluded from the capital project list, unless permissions are

sought from and granted by the University (Student Life Centre Operation Agreement, 2013).

The Authorization of Capital Expenditures Board Procedure defines capital expenditures as the

“cost spent by the Corporation on equipment, equipment assets, or to add, expand, or renovate

property, and as a series of expenditures that are related to a single outcome will be considered as

a single total expenditure” (Student Life Centre Operation Agreement, 2013). This can include,

but is not limited to, renovating or updating the building in which WUSA operates and the

equipment used by both staff in office, such as computer software, desks, computer screens,

chairs, etc., or for students in the building, such as couches, tables, et. (Student Life Centre

Operation Agreement, 2013). This could also permit investment in student spaces around campus

that are student operated, managed, or owned as well as capital expansion both on and off

campus.

The SLC Operating Agreement outlines that WUSA is responsible for the acquisition,

maintenance and replacement of any furniture and equipment used in the managed space. It

further states that that WUSA must obtain prior written approval from Plant Operations for the

installation, delivery, relocation or removal of any major furniture or equipment, however,

WUSA will be responsible for all expenses related to installation, delivery, relocation and

removal of furniture or equipment, including but without limitation, damages caused to the space

(Student Life Centre Operation Agreement, 2013). Further information on the improvements to

the SLC can be found in the SLC Operating Agreement.

Society Fees

When asked if society fees for capital or space costs were collected by their respected student

associations, the majority of answers from the scanned associations was that they did not collect

such fees; societies typically apportion their budgets for a capital improvement fund as a

3 SLC Operating Agreement 2013, page 10: “The Federation shall notify the University of any required

maintenance, including damage to the premises or of the contents of the premises that are owned by the University,

save and except normal wear and tear. If the notice concerns Capital Maintenance, the University will determine in

its own discretion whether Capital Maintenance is required and how and when to undertake such Capital

Maintenance. All other maintenance services will be provided by the University in a manner and time period

commensurate with maintenance for the University’s other buildings and land.”


220

proportion of their termly fee budget as remitted by their respective association or the University.

If WUSA is to implement a capital improvement program, despite other institutions failing to

support their constituency societies, it is recommended that society support be included. That

being said, no additional “society specific” capital fees should be levied by WUSA, rather the

capital improvement plan should include support for society spaces where those societies capital

funds are insufficient. It is of note that the Engineering and Math Society have their own capital

improvement fund4 and the Science Society is in the process of development of the same.

4 The Engineering Society capital improvement fund is used to support their student space and services. The

Engineering Society charges students 15% in the Fall term and 5% in the Spring term.


221

*Many student unions’ capital budget is developed in conjunction with their operating budget,

Compulsory v. Optional Fees

Student Union Compulsory

v. Optional

Fee Collected

Annually or Per

Term

Western University

Students’ Council

Compulsory $35.78 Per term

McMaster Students’

Council

Compulsory N/A N/A

Laurentian University

Students’ General

Association

Compulsory $114: Full-time students

$10: Part-time students

$10: Online students

Per term

Brock University Students’

Union

Compulsory $2.50: BUSAC Capital Fund

$1.50: Deferred Maintenance

$5.50: Strategic Expansion

Fund

Annually

University of Toronto

Students’ Union

Compulsory $1.00: Capital Resources

Fund

$10.24: Students Commons

Fee

$14.25: Students Commons

Fee

Per term

Wilfrid Laurier Wilfrid

Laurier University

Students’ Union

Compulsory $37.44: Full-time students

$9.36: Part-time students

*Waterloo students only

Per term

Queen’s University Alma

Matter Society

N/A

*No

response

from Jessica

Dahanayake,

VP

Operations

N/A N/A

Trent University Trent

Durham Student

Association

N/A

*No

response

from Lynch

Alcala-Hao,

Director of

Finance

N/A N/A


222

Municipal Capital Investment Plans

Municipalities Capital

Investment

Primary Sources

of Funding

Capital

Projects

Governance

Process

Waterloo - $105.3

million for

2020-2028

*2.2%

property tax

increase

- 34%

Development

charges reserve

funds (includes

development

charges, tax-base

and enterprise

debt)

- 27% Tax based

reserves

- 16% Enterprise

reserves

- 13% Other

(includes

developer

contributions,

industrial land

accounts and the

city)

- 6% Grants

- 4% Debentures

- 55%

Infrastructure

renewal

- 29% Strong

community

- 10%

Economic

development

- 3% Corporate

excellence

- 2% Multi-

modal

transportation

- 1%

Environmental

leadership

- Capital budget

guided by the city’s

strategic plan and

community

engagement

- City Council

considers draft

budget proposed by

staff

- Council approves

capital and

operating budget

together

Kitchener $105 million

for 2020-2030

*2.25%

property tax

increase

- 58% City

Enterprises

- 15% Capital

Pools (property

taxes, issuing debt,

and dividends)

- 13%

Development

Charges

- 7% Capital

Reserves

- 6% Fed Gas Tax

- 1% Other (grants

and fundraising)

- Road safety

and cycling

(e.g. clearing

snow in bike

lanes)

-Environmental

sustainability

- Improving

customer

services

- Maintaining

and Investing

Infrastructure

(e.g.

rehabilitating

City Hall

outdoor spaces)

- Develop budget

direction (March to

June)

- Budget

preparation (July to

August)

- Senior staff

review budget

(Sept to Oct)

- Capital budget

presented to

Council (Nov to

Dec)

- Public input

sessions

- Budget approved

by Council

(January)

Cambridge - $61.8 million

- 41%

Development

charges

- 34.4m

Economic

development

and tourism

- Reviewed by an

internal Capital

Budget Working

Group


223

*2.38%

property tax

increase

- 25% Water and

sewer rates

- 10% Property tax

- 9% Gas tax 9%

- 8% Debt

- 7% Other

- 16m

Transportation

& infrastructure

- 5.2m

Environment &

rivers

- 2.2 m

Community

wellbeing 2

- 1.1 m

Governance

and leadership

- 0.7m Arts,

culture,

heritage,

architecture

- Working group

reviews capital

priority rankings, in

order to prioritize

projects within

funding constraints

for all 10 years of

the capital forecast

- In November

2018, budget

reviewed by the

City’s Corporate

Leadership Team

- Corporate

Leadership Team

ensures budget

aligns with

strategic plan &

Council direction

- Community has

opportunity to learn

more about the

budget before

taking it to the

Budget and Audit

Council Committee

for approval

Guelph - $87.3 million

for 2020-2028

-2020-2028

capital forecast

is $1.6 billion

*2.7%

property tax

increase

- 40% Rate

Funding

- 26% Tax

Funding

- 20%

Development

Charges

- 11% Grant

Funding

- 3% Other

- Facilities (e.g.

Library)

- Infrastructure

renewal (67%

of budget, e.g.

replacement of

playground

equipment

placement,

water sewer)

- City growth

(e.g.

reconstruction

of existing

roads)

- City Building

(e.g. new

basketball

court)

- City staff develop

budget

guidelines/priorities

to align with

corporate objective

- Set budget

timeline (including

public

consultations)

- Develop draft

budget (community

members provide

input)

- Present draft

budget to city

council

- Review and

approval of final


224

budget by City

Council

Ottawa - $757 million

*3% property

tax increase

- Reserve

- Debentures

- Development

Charge, cash/debit

- Revenue

- Property tax,

grants, subsidies,

user fees

- Buildings

- Infrastructure

renewal (e.g.

road upgrades,

renewal to city

bridges,

housing capital,

traffic services,

police services,

improve transit

infrastructure)

- Develop budget

guidelines/priorities

- Set budget

timeline (including

public

consultations)

- Develop draft

budget (community

members provide

input)

- Present draft

budget to city

council

- Review and

approval of final

budget by City

Council

Kingston $51.8 million

*2.5%

property tax

increase

- General

Municipal Reserve

Funds

- Working Fund

Reserve

- Government

Grants

- Contributions

from others

- Transportation

and

Infrastructure

services

- Community

services

- Recreation

and leisure

services

- Cultural

services, etc.

- Budget developed

based on city

council’s

directions,

guidelines and

forecasts approved

from prior year

- Asset

management and

program services

serve as an

information source

for budget planning

- Residents provide

budget input

- Council, sitting as

Committee of the

Whole, review

budget proposals

from city

departments and

agencies

- Approval


225

Appendix A

(copied and pasted directly from WUSC website)

Background

The USC has never had a formal Capital Plan nor has it had any form of informal plan or process

pertaining to the purchase of new capital or the maintenance of existing capital. In the past, the

USC would do call outs for capital during the budget process. Those requests would be reviewed

as part of the budget process and would randomly be selected based on what the budget could

“afford” in capital. Each year those requests changed and there was rarely carryover of items

from one year to the next despite the fact that not all capital requests were granted in any given

year due to budget constraints. This process allowed for departmental and organizational wants

to be met however it did not necessarily allow for departmental and organizational needs to be

met. This process also enabled the USC to go forward with a budget that allowed for zero capital

dollars to be built into it. This not only resulted in the USC being forced to forgo certain capital

needs altogether but also prevented the USC from having funds to repair and replace broken or

missing capital items that had been previously purchased. As a result, the USC developed a very

large liability called Capital. And up until a few years ago, didn’t have a fee that was dedicated

to fund that large liability either. This resulted in the USC having an unfunded liability.

When Council determined that we were to come up with a Capital Plan, the USC had all

departmental managers compile their lists of needs and wants going out 10 years. They were

instructed to make such requests assuming status quo for their department.

Once this information came back it was compiled into the official capital plan. The other piece

that was added was the maintenance piece. In year 1, there is no maintenance piece identified in

the capital plan given the volume of renovations that are to be conducted.

How the Capital Plan works

In any given year, the capital plan priorities will come forward in conjunction with the annual

budget. At that point, Council can determine whether the priorities identified are in line with the

strategic plan and the general objectives of the organization. If they are not, Council can set a

directive to the Executive Council to reprioritize such that capital purchases for the year are in

line with the strategic plan and direction of the organization. Once that has been determined and

the funding for the plan has been approved (student fee), the Executive Council has the ability to

alter the priorities such that they meet the objectives of the EC for that year, provided that any

changes made do not go against the strategic plan or direction of the organization as set by

Council. If priorities are brought into the current year, the EC must determine what will be

moved into future years in order to remain within the funding as determined by Council. If

priorities are pushed off to future years, the EC must provide a clear rationale for doing so and

Council must be informed of the decision as well as the rationale. This flexibility enables an EC

to shift priorities if need be in order to achieve all goals and objectives for a given year.

However, pieces that are shifted into other years, cannot be done so indefinitely – the projects

must get done over time otherwise the integrity of the capital plan is lost.


226

The maintenance piece of the capital plan is one piece that cannot be altered or shifted – this

piece must be done every year.

Approval Process

The importance of the Capital Plan is that it allows the USC to plan for capital and it ensures that

we will have capital purchases on an ongoing basis. Each year, Council will set overarching

directives for the Capital Plan and the Executive Council will be responsible for determining

scope etc. for the approved priorities.

Once Council has approved the funding for the priorities, it is up to the EC to approve projects in

principle. Once management gets the approval in principle, it allows them to proceed to facilities

management to obtain quotes for the work as well as determine potential timing for the project to

proceed. Once management determines what projects can be done and when by facilities

management, USC management will then come back to EC for determination and approval of

scope and budget for the approved projects. Best practice indicates that at this point the EC

would appoint a “point person or persons” (likely the VP Finance) to work on a project team to

get the project completed in a timely manner. Information would be brought back to the EC by

this point person and feedback would be sought in that manner as well. The only time a project

would come back to EC in a formal manner by USC management would be if scope changed or

if there were budget issues


227

Appendix B

WUSC 2017-2018 Capital Budget


228

Appendix C

Brock University Students’ Union, Bylaw 105

“Capital Fund Bylaw”

(Copied and pasted directly from BTSU bylaw)

Access to Capital Fund (unrestricted portion):

1. BUSAC or its designate may approve expenditures for up to 75% of the money that is

collected annually for the Capital Fund account during their one (1) year term.

a. Approvals of expenditures will require a 50% + 1 vote by the designated

approving body in two (2) consecutive meetings where quorum has been

achieved.

b. In the event that the second reading meeting of BUSAC does not reach or loses

quorum prior to the vote on the expenditure, the BUSU Board of Directors shall

be allowed to serve as the body that approves the second reading.

2. BUSU Board of Directors shall be the approval body during times when BUSAC is not in

session (i.e. Summer Months), in the event BUSAC membership has fallen below

legislated quorum or when BUSAC has designated its authority.

Access to Capital Fund (restricted portion):

1. The 25% (restricted) fund amount shall be held in reserve and cannot be spent through

the above approval process in the year it is collected. The purpose for the 25% (restricted)

fund amount is to create a reserve fund in the spirit of Section 22.6 (BUSU Fiscal

Management Policy) like larger non-reoccurring, non-operational projects, renovations,

acquisitions of space, properties, to cover the short falls in any unrestricted division of

BUSU or repayments of internal loans. If funds from the 25% (restricted) fund account

are used to cover the short falls in any unrestricted division of BUSU or repayments of

internal loans, the approval process will be a 2/3rd majority vote of the BUSU Board of

Directors. For all other uses of the fund account, the approval process will be as follows

in order of occurrences:

a. A presentation to BUSAC shall be made by the BUSU General Manager, VPFA

and any other Executive member that is needed which outlines the current fund

account balance, purpose of the request to access, plan for the expenditure,

oversight mechanism of the expenditure and any other relevant materials or

supporting documents required to provide a clear understanding of the request for

BUSAC.

b. Following the presentation, BUSAC must then vote 50% + 1 in favour of the

access request.

c. Following BUSAC approval, the request must gain a 2/3rd majority vote of the

BUSU Board of Directors.

d. Following the approvals, if during the execution of the project additional

expenditures need to be requested for unforeseen construction, labour, material,

permit or similar issues, the additional funds must be approved by the BUSU


229

Board of Directors by a 2/3rd majority vote. This information should be reported

to BUSAC in a timely manner by either the General Manager or the Chair of the

Board.

e. Following the completion of the expenditure, the General Manager, VPFA and

any other relevant parties must present the final and completed project budget vs.

actuals to BUSAC

Reporting

1. Reporting of the usage of the Capital Fund shall be the responsibility of the General

Manager and the Vice-President, Finance & Administration. Reports should include:

Summary of scope of work or project, Amount approved (including any increases to

original funding) Amount spent and Confirmation that appropriate filings have been

completed with the accounting department or relevant departments within BUSU,

University or municipality


230

Appendix D


231

References

Brock University Students’ Union, Capital Fund Bylaw, 2019 https://www.brockbusu.ca/wp-

content/uploads/Bylaw-105-Student-Capital-Fund-2.pdf

Brock University Students’ Union, Finance, Planning and Sustainability Committee Bylaw, 2019

https://www.brockbusu.ca/wp-content/uploads/Bylaw-602-Finance-Planning-Sustainability-

Committee-1.pdf

Centre for Land Use, “Planning Implementation Tools: Capital Improvement Plan,” September

2008, https://www.uwsp.edu/cnr-

ap/clue/Documents/PlanImplementation/Capital_Improvement_Plan.pdf

City of Guelph , “Capital Investment Strategy”, 2019 https://guelph.ca/wp-content/uploads/2019-

approved-capital-budget-and-2020-2028-capital-forecast.pdf

City of Kitchener, “2019 Capital Budget and 10 Year Forecast”, 2019

http://kitchener.ca.granicus.com/MetaViewer.php?view_id=2&clip_id=1009&meta_id=57664

City of Kitchener, “2019 Consolidated Budget”, 2019

https://www.kitchener.ca/en/resourcesGeneral/Documents/FIN_FP_2019_Consolidated_Budget_

Info.pdf

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WATERLOO UNDERGRADUATE STUDENT ASSOCIATION POLICIES

Exam Scheduling and Relief

Policy Title: Exam Scheduling and Relief Policy Number: 0XX Revision 0Policy Class: AdvocacyPolicy Category: UA

Effective Date:[proposed for Nov. 3/2019]

Approval Date:[proposed for Nov. 3/2019]

Last Revision Date:[N/A]

Review Year:[2021]

Sponsor: Megan TownAttachment: NoneResponsible Bodies: Education Advisory Council (EAC)Authority:

- Charter of the Federation of Students: "To act as the representative of the undergraduate students of the University of Waterloo... including ...those students of various constituent faculties, schools, institutes, departments and colleges, both affiliated and federated, which are or may be from time to time a part of or associated with The University ofWaterloo"

- Bylaws, Article 8: Students' Council: “Council shall have the power ... toset the Policies of the Corporation.”

- Bylaws, Article 9: Officers: “The Vice President, Education shall be generally responsible for advocating on behalf of undergraduate students to the University of Waterloo…”

Key Words: exams, exam scheduling, exam relief, mental health

POLICY STATEMENT:This policy describes advocacy objectives on exam scheduling and relief within the context undergraduate student mental health and workload.

PURPOSE:The intention of this policy is to document the student opinion and recommended practices on exam scheduling and relief. Applicable representatives will advocate for the objectives herein laid out. This policy was written as a result of constituent feedback on the inadequacies of the current exam relief accommodations.

DEFINITIONS:Exam relief – the process of requesting alternative scheduling arrangements in the event of a student’s exams scheduled close together.


Appendix I - Proposed Exam Scheduling and Relief Policy

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SCOPE & EXEMPTIONS:This policy applies to any representative elected by or through WUSA who is representing student opinion on exam scheduling and relief. This includes executive and undergraduate senators.

POLICY COMMUNICATION:The policy will be posted on the Corporation’s website and internal network drives. Affected parties, including undergraduate university senators, will be advised of the new policy via distribution by the Vice President, Education, ora designate.

POLICY:The 2017 PAC-SMH report recommended “Final exam schedules and availability of the exam schedule during the course enrollment period.” [1] Inaddition, exams, particularly closely scheduled exams, continue to put unduestress and demands on students. The current university commitment to students is inadequate. Students may only seek relief in the following two situations, [2]

Writing two examinations in a row Writing in the last period on one day and the first period on the next

day

Students are only able to move one of their exams by one hour as per the options below, [3]

I will write the following exam one hour before the regularly scheduled start time. (Available for 12:30 p.m., 4:00 p.m., 7:30 p.m. exams.)

I will write the following exam one hour after the regularly scheduled start time. (Available for 9:00 a.m., 12:30 p.m., 4:00 p.m. exams.)

Relief is not available for exams written in a computer or wet lab. [3]

Furthermore, moving an exam by one hour does not provide enough time for students to take a break and travel between exams.

The following advocacy objectives shall apply for final exams:1. More extensive and effective exam relief policies should exist, which

should contain, at minimum, the following. a. Students should not have more than two exams in a 36-hour

period. i. Students should be eligible for exam relief if they have

more than two exams in any given 36-hour period. ii. Such relief should not result in the violation of another

advocacy objective.b. Students should not have two or more consecutive exams.

i. Students should be able to request a recess of at least one exam timeslot between consecutive examinations.


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c. There should not exist unreasonable limitations on exam relief including, but not limited to the following.

i. Students should be permitted to work with their instructor to reschedule exams undertaken in a lab.

ii. Students should have the ability to ask questions of a knowledgeable proctor when accessing exam relief, including through remote or electronic means.

d. In the event of exam cancellation, i. Cancelled exams should be rescheduled for the next

available Sunday or other suitable make-up day.ii. Students should still be able to request exam relief if an

exam so rescheduled violates another exam scheduling guideline.

iii. The University should make reasonable attempts to reschedule exams for students who have a justifiable reason for accommodation including International students who intend to travel home.

1. Rescheduling may include but is not limited to scheduling the exam sooner than the next exam make-up day and allowing a student to write the exam another term.

2. More extensive exam scheduling policies should exist which should contain, at minimum, the following.

a. Exam scheduling should consider and prioritize student wellness.b. For cohort-based programs, reasonable attempts should be made

to avoid scheduling of the cohort’s exams on the same or consecutive days.

c. Exams not scheduled by the registrar’s office should be scheduled prior to or in comparable timeline with release of the exam schedule by the registrar’s office.

HISTORY:This is the first draft of this policy. Previously, advocacy objectives on exam scheduling and relief were not encompassed in policy.

COMPLIANCE AND ENFORCEMENT:The President and Vice President, Education shall work with the relevant University administration and the Senate Undergraduate Council to achieve the advocacy objectives laid out herein.

The Senate’s undergraduate caucus shall ensure the advocacy objectives laid out herein are a priority in the University Senate.

APPENDICES:References


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[1] https://uwaterloo.ca/mental-health-wellness/pac-smh-report-and-recommendations/findings-and-recommendations[2] https://uwaterloo.ca/registrar/final-examinations/relief-information[3] https://uwaterloo.ca/forms/undergraduate-studies/request-relief-consecutive-final-exams


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PARACHUTELIFE AND CRITICAL ILLNESS INSURANCE

FACT SHEET

In collaboration with Digital Porte, Studentcare is proud to announce the launch of Parachute Insurance : simple and intuitive in coverage designed with students in mind. Without having to answer any medical questions, eligible students will be able to purchase guaranteed-issue (GI) life and critical illness coverage online and with instant activation. Higher coverage amounts are also available through a short health questionnaire.

WHAT IS LIFE AND CRITICAL ILLNESS INSURANCE? Life insurance is a lump sum payment upon the death of an insured person.

Critical illness insurance is a living benefit that pays an insured person a lump sum, with no restrictions on how to spend the money, if they are diagnosed with a covered condition and survive.

WHY PARACHUTE? GUARANTEED ISSUE If students buy within the 60 day enrolment window, they are pre-approved for up to $100,000

in life insurance and $30,000 in critical illness insurance.

AFFORDABLE Parachute provides an affordable financial safeguard for students and their families.

EASY The entire purchasing process is online—no phone calls or in-person visits required. It only takes

a few minutes, and once complete, students receive immediate confirmation of coverage.

IT CAN COVER DEPENDANTS Students decide how much coverage they want and can design a plan to cover their family.

IT GOES WHERE STUDENTS GO The policy can stay with students after they graduate.

HOW DO STUDENTS GET IT?This product would be rolled out in Fall 2019 as a pilot project aimed at students that have enrolled a dependant. If successful, this product could then be launched for all students.

Parachute, on behalf of Studentcare, will email students who have enrolled dependants in the Studentcare Health & Dental Plan. The email will explain what coverage is available to them and how to purchase it. Anywhere between a week and a day prior to sending this email invitation with purchasing information, Studentcare (or Parachute on our behalf) will send a pre-announcement message to students to let them know about the product. This pre-announcement message could be included in an already scheduled email (e.g. a general Plan introduction email). Once the email invitation has been sent, two more reminder emails will follow within the 60-day period during which students may purchase the product.

REPORTINGParachute will be able to provide up-to-date performance reports per student association. Studentcare will also likely conduct surveys in the future to gather information on students’ interest in the product.

STUDENTCARE 1200 McGill College Avenue, Suite 2200 Montreal, Quebec H3B 4G7


Appendix J - StudentCare Life Insurance Offering

238

FACT SHEET

STUDENTCARE 1200 McGill College Avenue, Suite 2200 Montreal, Quebec H3B 4G7

In April 2018, Studentcare conducted a survey of 590 students from universities/colleges across Canada to gather information about the demand for a life and/or critical illness insurance plan for students. Survey results were very positive and showed the following:

• OVER 90% of students think life insurance is somewhat or very important.

• OVER 90% of students think critical illness insurance is somewhat or very important.

• OVER 50% of students are not currently covered by life or critical illness insurance.

• OVER 70% of students would consider buying life and/or critical illness insurance in the next school year.

• OVER 85% of students would be willing to pay at least $10/month for $100,000 in life insurance.

• OVER 90% of students would be willing to pay at least $5/month for $30,000 in critical illness insurance.

• OVER 90% of students would consider enrolling their family in life and/or critical illness insurance for an additional fee.

• OVER 70% of students would prefer to purchase life and/or critical illness insurance online via mobile and/or computer.

It was based on these survey results, Studentcare observed a need for life and critical illness insurance coverage among our student population.

SURVEY RESULTS


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Federation of Students' Council Agenda Regular Meeting

Documents

Transcript of Federation of Students' Council Agenda Regular Meeting