March 26, 2012
The latest financial update to the Queen’s community provides a look at the fiscal year ending April 30, 2012 and the preliminary 2012-13 operating budget, and a brief introduction to the new budget model, which will be introduced for the 2013-14 budget year.
The update highlights a number of factors that affect the current-year financial projections, the result of which is to offset the previously projected operating budget deficit.
In addition, it outlines pension plan changes and factors contributing to a three-year temporary solvency exemption. But it warns the pension solvency funding requirement commences in 2015.
“We’d like to recognize the contributions of employee groups that approved changes to the pension plan in their negotiated contracts last summer,” say Provost Harrison and Vice-Principal Davis. As a result, we have seen savings on the current year solvency interest. ”
Although this is encouraging news, they stress that there is still much work to be done to put Queen’s on a sustainable financial footing. They warn that looking beyond next year the university will continue to have unresolved issues with respect to the operating environment.
Provost Harrison will present a balanced 2012-13 budget as directed, to the Board of Trustees at their May meeting. The balanced budget relies on the drawdown of carry-forward funds by some units. This is not a sustainable strategy.
A new budget model is being developed for implementation in 2013-14 with the objective of transparency in resource allocation decisions and a strong alignment to academic planning.