Clean audit opinion from the external auditors
“The Consolidated Financial Statements present fairly, in all material respects, the financial position of the University as of April 30, 2020 and the results of its operations and its cash flows for the year then ended, in accordance with the Canadian Accounting standards for not-for-profit organizations.”
UNB reports a structural operating deficit of $6.6M, a negative variance of $4.2M from the approved budget caused by the unforeseen termination of the Provincial Nursing Grant and reduced short-term investment earnings due to the COVID-19 pandemic.
We transferred $2.4M from reserves in accordance with the long-term budget strategy, and an additional $4.2M from reserves held for the Nursing programs to end the year in a net balanced position.
We are taking actions to reduce clinical nursing program costs and we have signed new agreements with the Provincial Government for LPN programs that will help to mitigate the revenue loss in future years.
Excluding the effect of the nursing grant termination, revenue grew by 1.8% which exceeded the rate of expense growth.
UNB has focused on renewal and expansion of its residence system to support future anticipated enrolment growth as we implement the UNB Toward 2030 vision plan with new academic programs.
The Barry and Flora Beckett Residence was substantially complete in 2019-20 and will open for students in Winter 2021. It will provide accommodation for more than 100 students as UNB moves forward with exciting new programs on the Saint John campus.
The Tibbits residence renewal was completed in 2019-20 with Lady Dunn and Joy Kidd residence renovations to be completed by Fall 2021. The renovation of the Dunn-Kidd-Tibbits complex will provide newly renovated rooms for 355 students on the Fredericton campus and eliminate $10M in accumulated deferred maintenance, essentially resetting the buildings to "new" condition.
Trust and endowment assets fell in 2019 – 2020 by $8.2M to $334.1M.
Decrease due to:
| Donations and other contributions | $16.7M |
| Investment losses | ($4M) |
| Spending | ($20.9M) |
| $8.2M |
The COVID-19 global pandemic negatively affected the Trust and Endowment Fund resulting in the need to cover 2019-20 spending from the endowment spending reserves.
The Fund normally earns sufficient investment earnings to cover the spending and in years with excess investment returns the University sets aside funds in a reserve for use in years with insufficient returns to cover spending. This provides a spending reserve fund to mitigate the risk of investment losses and maintain the endowed capital in accordance with donor agreements.
Approximately $8.1M (37.8% of the Fund spending) was disbursed in 2019-20 for student awards which represents 62% of total university student awards spending.
