Financial review of the audited Financial Statements

362.0 341.4 188 102 31 14 13 9 2 3 187 108 9 11 12 8 5 2

358.2 186 100 32 18 12 8 3 -

2021-22 2020-21 2019-20

Student fees Government grants and restricted revenue Ancillary operations Sales and services Research Amortization of DCC Investment income Gain on sale of assets

Figure 61: Expenses ($ millions)

359.3 334.4

229 58 27 30 11 4 221 49 22 28 10 5 346.3

227 60 22 25 7 6

2021-22 2020-21 2019-20

Salaries and benefits Other expenses Amortization Scholarships Interest Cost of sales

Figure 62: Assets ($ millions)

857.8 847.1

511 207 139 482 207 158 1

442 152 90 2 685.2

2021-22 2020-21 2019-20

Capital assets Restricted investments Current assets Employee future benefits asset

Figure 63: Liabilities ($ millions)

605.7 589.2

216 238 117 34 194 260 104 31 196 137 88 32 453.9

2021-22 2020-21 2019-20

Deferred capital contributions Long-term debt and debenture payable Current liabilities Employee future benefits obligation

Figure 64: Net assets ($ millions)

119 83 84 .10 252.1 257.9 124 87 77 .10 104 115 41 .09 231.3

Endowment Invested in capital assets Internally restricted Unrestricted Employee future benefits

Revenues

Revenues increased to $362 million, or 6.0 per cent more than last year. Student fees increased $1.1 million, or 0.6 per cent, due to an increase in international enrolment and tuition rates, offset by a decrease in domestic enrolment. Government grants decreased by $6.6 million, or 6.4 per cent, driven by the one-time MCU COVID grant funding of $7.9 million received in the prior year. Ancillary operations revenue increased $21.9 million in residence, parking, dining, and campus store due to lifted COVID-19 restrictions and more staff and students on campus. Sales and service revenue increased $2.7 million, or 23.6 per cent, driven by increased program fee and other revenue related to sports and recreation programs, and several activities across the University resuming. Investment income decreased $3.2 million, and research grant revenue increased $1.4 million. In addition, 2021-22 included gain on sale of asset revenue of $3.3 million related to the sale of the Hamilton campus and other assets.

Expenses

Expenses increased to $359 million, or 7.4 per cent more than last year. Salaries and benefits increased $8.9 million, or 4.0 per cent. $6.1 million of the increase relates to salary costs, of which $4.0 million related to temporary personnel groups, which were significantly affected by the pandemic in 2020-21. Other operating expenses increased $6.3 million, or 18.8 per cent, as a result of lifted COVID-19 restrictions; travel, conference and hospitality expenses resumed in 2021-22, and more events were held across the University. Scholarships, fellowships and bursaries increased $2.7 million, or 9.7 per cent related to a significant increase in the Undergraduate Brock Scholars award program due to grade inflation from secondary schools. Expendable equipment, repairs and maintenance increased $1.5 million, or 15.1 per cent primarily due to increased software purchases. Amortization of capital assets increased $5.0 million due to the completion of various capital projects now eligible to begin amortizing, including Residence 8, Decew Residence Renewal and Canada Games Park.

Assets

Assets increased to $858 million, or 1.3 per cent over last year. Notably, capital assets increases of $56.4 million, including assets related to Canada Games Park, Residence 8 and Decew Residence Renewal projects, were offset by $26.9 million in amortization. Current assets decreased by $18.5 million or 11.7 per cent, mainly due to a decrease in cash and cash equivalents due to higher amounts of cash used in investing activities. Offsetting the decrease in cash was an increase in accounts receivable and government grants receivable, attributable to an increase in receivables for students accounts and the FedDev VPMI equipment. Restricted investments increased $0.5 million and the employee future benefit asset decreased $0.8 million.

Liabilities

Liabilities increased to $606 million, or 2.8 per cent from last year. Deferred capital contributions increased $22.1 million, or 11.4 per cent, mainly from contributed assets of Canada Games Park. The employee future benefits obligation increased $3.2 million, with the Pension benefit plan obligation increase of $8.6 million offsetting the non-pension employee future benefit obligation decrease of $4.6 million. Accounts payable and accrued liabilities decreased $5.8 million, or 13.1 per cent, due to accruals for construction projects and deferred revenue decreased $2.0 million due to the deferred gain from the sale of the Hamilton campus in 2020-21.

Net Assets

Net assets decreased to $252 million, or 2.2 per cent from last year, in line with the increases in assets and liabilities. The funds included in the endowments, invested in capital assets, and internally restricted and unrestricted reserves are all supported by cash or restricted investments.