Framework for Multiyear

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• Framework for Multi-year
• Strategic Financial Planning

October 2006
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Contextual Background

• External financial review key recommendations
• Rapidly changing landscape
• Its about more than balancing our budgets

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UNB Strategic Financial PlanningMulti-year
Financial Road Map

• 5-Year Forecasts
• Operations - Optimistic
• Capital - Best Estimates
• Endowments - Pessimistic

• Sensitivity Analysis
• Change in Key Variables

5-Year Financial Road Map - Targets
Assessment of Options and Choices
Strategic Priorities - Costing of Priorities
Revenue/Funding Options - Groupings and ranges
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UNBF Enrolment 2001-2005Projections for
2006-2011Graduate and Undergraduate (full and
part-time)as of October 1, 2006
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University of New BrunswickFredericton
CampusOperating Budget ForecastsSeptember 18,
2006(Best Estimate Assumptions)
(000s)
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UNB Fredericton CampusOperating Budget
5-Year Ranges
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University of New BrunswickFredericton
CampusRevenue Composition and 5-Year Forecast
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University of New BrunswickAnnual Basic Tuition
Fee IncreaseChanging Landscape
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University of New BrunswickFredericton
CampusExpendituresCost Structure Profile and
5-Year Forecast
Plus Net Ancillaries
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University of New BrunswickFredericton
CampusBudget Growth RatesChanging Landscape
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UNB Fredericton CampusAnnual Operating Budget
ShortfallBest Estimate Assumptions
(millions)
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UNB Fredericton CampusInfrastructure Renewal
Funds Available compared to Requirements
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UNB FrederictonOptions/Choices
UNB/Partners/Stakeholders

• Combination

• Revenue initiatives
• Expense initiatives
• Recalibration to a new lower level
• Rebalancing cost structures
• Investments to strengthen
• Financial Environment

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UNB Fredericton Campus

• 2007-08 Budget Planning

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University of New Brunswick2007-08 BudgetKey
Parameters (for discussion)

• Operating Budget
• What will be the overall target balanced
  budget or other
• Basic tuition fee planning is currently in the
  4-5 zone, is this appropriate
• What other sources of revenue are realistic
• Expenditure reductions/restrictions will be
  required to what level and with what impact on
  operations
• What level of financial flexibility should be
  sustained or established
• To what degree should budgets contain investments
  in key strategic priorities

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University of New Brunswick2007-08 BudgetKey
Parameters (for discussion)

• Capital Budget
• What is the overall expected level of
  infrastructure renewal funding levels
• Is the expected level of funding acceptable given
  standards and requirements, what can be done
  about this
• What will be the level of new cash flow from land
  development, how will these funds be
  strategically deployed.
• Are there other capital projects on the horizon
  that must be considered in the 2007-08 budget, if
  so, what are the implications.

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University of New Brunswick2007-08 BudgetKey
Parameters (for discussion)

• Endowments and Restricted Funds
• What is the expected level of endowment funding
  available to support operational and capital
  requirements.
• We are planning to continue with the current
  endowment spending rate of 4.5, is this
  appropriate.
• What is the general strategy for campaign
  proceeds that are undesignated.
• What level of support from the operating budget
  will be required to service Forging Our Futures
  commitments.

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University of New BrunswickFredericton
Campus2007-08 Budget Planning

• NEXT STEPS
• Discussing/answering questions
• Determining balance
• Reviewing options
• Next meeting, October 31, 2006