Author: Alexander Kenny
As the fall semester begins, SFU students return to campus to start new classes, whether the end of their program is within sight, or they’re just beginning their studies at the university. This semester-long routine, which has become so familiar to SFU students, begins with the same ritual as always: the opening of cheque books and paying of tuition. Once the cheque passes the registrar’s desk, however, the destination of these funds for the students is a relative unknown, simply a sacrifice passing into the void.
How much money is there?
The 2017 student welcome guide suggests that a domestic undergraduate student will pay almost $7,000 in tuition and fees in a year at SFU (two terms with five courses each term). When the fiscal year ended on March 31, SFU had created $247,630,000 in revenue from student tuition. The 2017 Annual Financial Report also indicated that student tuition fees accounted for 36% of the university’s revenue from the previous year.
The report also indicated that revenue from tuition had risen by $14 million due to a 2% fee increase on both domestic and international students. Domestic undergraduate tuition accounted for $100,717,000, while international undergraduates contributed $91,692,000, and graduate students added $30,253,000. Finally, non-credit courses and other student fees totalled $24,968,000. Of the nearly $25 million that was generated from non-credit courses and student fees, a 3% increase on student fees which relate to credit courses made the year prior is attributed to the gain.
What are SFU’s main expenses?
Staff pay
Of SFU’s expenses, salaries and employee benefits are the largest, accounting for 63% of expenses as of the 2017. From this, it is safe to presume that much of student tuition is directed towards staff salaries and benefits.
As The Peak reported in August 2016, President Andrew Petter earns $487,908 annually. In the same article, it was reported that several Vice-Presidents of the university were making six figures a year while TAs were only making $17,457.
Though further information on SFU staff salaries is unavailable, it is undeniable that most of this is extremely necessary of a student’s tuition cheque. Without the staff members, from lecturers to clerks and building services workers, the institution would cease to function.
Building maintenance
It is also reasonable to assume that funds from student tuition are being used in the physical maintenance of campus buildings. The 2017 Annual Financial Report discusses the increasing cost of building renewals from $25 million in 2015, down to $18 million in 2016, rising to $39 million in 2017, with another $19 million being offered by the provincial government to aid in those repairs.
The rising cost of building maintenance and renewal is an inevitable fact, as described in the report, given the aging campus in Burnaby, which recently celebrated its 50th anniversary. This rising cost undoubtedly points to contribution from the student body, to avoid studying in deteriorating physical spaces.
Miscellaneous costs
There are a number of smaller expenses that funds are also used to pay for, including $69,572,000 in supplies and operating expenses, $42,142,000 for professional and contracted services, and $9,841,000 for utilities. These are expenses that, much like the cost of building maintenance and renewal, are necessary components of maintaining the functionality of the university.
To summarize, the university spent $501,894,000 on instruction costs, $135,717,000 on research, and $20,777,000 on community engagement. These are at the core of integral investments to creating, and/or maintaining the university’s reputation as one of the nation’s premier academic institutions.
How is money budgeted?
At the time that this article was written, no members of the university’s administration were able to comment on exactly how much of SFU student’s tuition is spent where. Due to this, it also remains a mystery as to why the 2017 Annual Financial Report indicates that a budget of $526,855,000 was set aside for instruction costs, while only $501,894,000 was spent, though it is possibly due to going over budget in other areas or simply not needing the entire budget to meet its needs.
What about other fees?
When looking at the fees that SFU students are charged on a per-unit basis, as well as the activity fees that are charged to students each semester, it is generally far clearer to see where this money goes. A full-time SFU student pays a $75.42 fee for access to the athletic and recreation services as well as a $107.14 SFSS activity fee (a part-time student pays $37.71 and $53.60 respectively.)
The SFSS fee is split across a number of different initiatives and campus groups. Small amounts are split between the accessibility fund, the First Nations Student Association, the SFSS Food Bank Program, and Embark, a group that advocates for student leaders in sustainability, the Simon Fraser Public Interest Research Group, The Peak Publication Society, Simon Fraser Campus Radio Society, and the World University Services of Canada Student Refugee Program split a $19.40 portion of this activity fee. The remaining cost is split between the Build SFU levy, at $40 this year, for full-time undergraduate students, and a $40 SFSS membership fee.
How much does the SFSS collect?
In the SFSS financial statements from the fiscal year ending in 2015, the society made $10,070,415 in revenue, of which, $8,526,050 was from activity fees and levies. The revenue attributed to the general fund which was not from activity fees and levies came from retail services, the general office, rental revenue, Graduate Student Society service sharing revenue, as well as accumulated interest and other miscellaneous amounts. Much of their revenue is also spread and created through different separate funds, such as the Build SFU fund, the Undergraduate Health Plan fund, the First Nations Students fund, or the space expansion fund.
How does the SFSS use that money?
While the revenue that enters through activity fees is split into a variety of funds, those same funds are then removed to pay for expenses that relate to the fund. For instance, $266,194 were taken from the general fund to pay for the administration, operation of the office space of the administration and the financial office, while $195,625 were used to pay for the general office.
Similarly, $196,300 was taken from the Build SFU fund to pay for the Build SFU office. $1,207,124 was taken from the general fund in the 2015 fiscal year to pay for general activity and program expenditures, $4,445,134 was used from the Undergraduate Health Plan fund to pay for the student medical and dental programs.
The SFSS also paid its board members a combined stipend — a paid salary — of $256,118, a nearly $31,000 increase on the previous year’s amount. This included $3,224 for negotiations and consulting expenses, $11,221 in elections expenses, and $241,673 in salaries.
Over $300,000 was used from the general fund to pay for discretionary grants to help fund both departmental student unions and clubs, while over $600,000 was taken from the capital asset fund to pay for the amortization — the paying of a debt on a regular schedule in instalments, like a lease — for building costs, space, as well as food and beverage.
In the fiscal year ending in 2015, the SFSS also paid the university $308,730 for the space it uses in the Maggie Benston Centre while taking $121,726 from the space expansion fund to pay for building maintenance, and $7,906 for repairs and renovations, almost a $2,000 increase from the year prior.
Is there anything else we should know?
These documents would indicate that SFU students’ tuition does not simply disappear, nor is it frivolously thrown about. Instead, it is spent in a manner which our student body should be pleased with, with the expenses to keep SFU functioning, well-maintained, and exceptionally staffed. These are the priorities that the students should expect the university to focus on, should they also want to continue to be able to expect a high quality post-secondary education and experience. Furthermore, the Simon Fraser Student Society spends a vast amount of its funds across a wide assortment of initiatives to both maintain itself while bettering the well-being and experience of the students.
Due to no one from the administration being able to comment on these financial statements or the direction of funds, much of this information was left up to interpretation. Clearly, in asking where exactly student tuition and fees go, the question leads to answers that are not easily understood.
With the variety of funds, initiatives, and expenses that the money is directed towards, it can simply be assumed that the university is being well-maintained, and that the university and its student society have used the funds to fulfill their mission as a post-secondary institute while improving the experience of its students. Anything further unleashes a confusing web that raises more questions and necessary analysis that would take the lengths of our programs to understand.
[…] Follow the money […]