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Arts and Science Federation of Associations
Fee Levy Increase Referendum Question
Presented by the Finance Committee
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Current ASFA Financial Situation
• In the 2013-2014 year, ASFA posted a deficit of 57,977.00$.
• In the 2014-2015 year, ASFA has budgeted a deficit of 61,690.83$.
• This deficit can be attributed to multiple causes, namely • Financial restructuring 1. Increase of costs 2. Increase of services3. Increase to MA budgets
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• Despite the deficit, ASFA has been able to maintain its services due to accumulated cash assets from prior years.
• However, at this rate, ASFA will be below a year-end cash balance of 150,000.00$ (as prescribed in by-laws).
• This either entails budget cuts to the Association’s accounts/services, or a need to increase the levy paid by students.
Current ASFA Financial Situation
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Factors in Fee Levy Calculation
Five main factors were included in the calculation of the fee levy increase:
•Term1.Year-end account balance2.Deficit annulment 3.Projected increase in expenses4.Variance
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Fee Levy Factor: Term
ASFA decided to opt to work under a 5-year model to restrain the amount of fluctuation in the calculations.
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Fee Levy Factor: Year-End Account Balance
• At the 2014 year-end, ASFA had 178,752.00$ worth of cash assets (internal and external bank accounts)
• ASFA must maintain an amount of 150,000.00$ in their account at their account by year-end as per Annex B, Article 3.
• Considering ASFA’s planned deficit, this amount will drop to 117,061.17$ with a 0% average deviation from the budget.
This means, ASFA will require 32,938.83$ to attain their projected account balance of 150,000.00$.
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Fee Levy Factor: Deficit Annulment
• ASFA has planned a deficit of 61,690.83$ for the 2014-2015 academic year.
• ASFA assumes to have a base1 constant deficit for future years.
This means, ASFA will require to raise their revenue by 61,690.83$ to match their expenses.
1Increases and variance explained in following slides.
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Fee Levy Factor: Projected Increase in Expenses
• An assessment was done to evaluate which expenses we foresee increasing. The list includes:
- Office Overhead and Supplies- Professional Fees- Election Expenses- Council Expenses- ASFA Events- Newsletter Services- MA Retreat Costs- MA Budgets
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Fee Levy Factor: Projected Increase in Expenses (continued)
• ASFA had the option to manually impose a projected increase in expenses, an indexation to inflation or both.
• A manual increase was more appealing to ASFA as it would be easier to track the per student levy, as well as control the amount of fluctuation in revenue.
• Using this year’s projected expenses for “increasables”, the total amount is projected at 332,820.50$.
• ASFA opted for a percent increase on “increasables” of 10.0%2.
To account for “increasables”, ASFA would require an additional 33,282.05$.
2A 10% increase in year 5 is equivalent to a 1.9245% yearly increase.
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Fee Levy Factor: Variance
• Variance has been naturally accounted for in the calculation in two ways:
• A natural “cushion” has been accounted into the equation from the repeating addition of the 32,938.83$ (which brings back the account to 150,000.00$).
1. A variance is created with the estimated 10% increase on “increasables”. This variance is due to the variable percent increase in costs. However, as previously stated, this variability allows ASFA to better track its projected revenue and levy.
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Credit Calculation
• Total credits taken are assumed using an average from the levy received in 2013 and 2014.
This average assumes a total of 342,444.67 credits taken within the Arts & Science Faculty every fiscal year.
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Fee Levy Increase
The sum of all required increases previously calculated is 127,911.72$.
The total number of credits is assumed at 342,444.67.
ASFA would therefore have to increase their fee levy by 0.38$3.
3The exact fee levy increase amount is calculated at 0.373525$.
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Faculty Comparison
Faculty Association Fee Levy Population*
ASFA 1.22$ 14,998
CASA 2.35$ 7,347
ECA 2.00$ 6,500
FASA 1.35$ 3,700
*Exact numbers for ASFA and CASA are from the Dean of Students Office. ECA and FASA Populations are taken from the Concordia website for the 2012-2013 years.
Table 1. Fee Levy and Population per Faculty Association
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Proposed Fee-Levy Increase: 0.38$Proposed Start of Increase: Winter 2015
Referendum Question:Do you agree to increase ASFA’s per credit fee
levy by 0.38$ to a total of 1.60$ per credit, effective starting in the winter 2015 semester
(January 2015)?