Trent University in good financial shape: VP
In the wake of Sudbury’s Laurentian University filing for creditor protection over a $20million deficit and $91 million in debt owed to banks, officials at Trent University say the Peterborough university remains on a firm footing despite the impact of the COVID-19 pandemic.
Trent maintains an A-minus credit rating from DBRS Morningstar and is building on six years of enrolment growth, a university official told The Examiner.
The university estimates it has had losses of $14.6 million after the pandemic forced a shift to mostly online learning back in March. The university is planning for a full return to in-class
room learning in September.
The pandemic has meant the loss of fees for housing, food services, parking and athletics that on-campus students would normally pay. There has also been $5 million in additional expenses to cover COVID-19 prevention measures and tuition losses of $1 million.
The result is an estimated $8.6-million deficit, according to the latest update presented to the university’s board of governors on Feb. 5.
“The budgets of all universities have been negatively affected by COVID-19, but Trent continues to navigate the situation well,” said Trent finance and administration vice-president Kent Stringham.
The university is aiming to recoup about $6.4 million through deferrals and other strategies, and aims to raise revenues through investments, while maintaining services and aiming for a balanced budget for 2021-22.
The university projects enrolment will grow to about 10,760 full-time students, an increase of about four per cent over last year and 1.7 per cent more than expected.
“While domestic enrolment is more than planned and international enrolment is predicted to be higher than last year, international enrolment is forecast to be less than budgeted,” states a report to the board of governors.
“This shortfall is estimated to result in a loss from budget of $1.0 million in tuition revenue net of student financial aid and a provision for additional bad debts (note, international tuition rates are more than domestic tuition rates).”
The university is aiming to lessen the loss of revenue by accepting more students, especially international students, for the winter 2021 semester.
For 2020-21, current tuition is estimated to be about $86.5 million, while government grants account for about $55.5 million.
Total expenses are slated to run close to $154 million, with instructional staff expenses coming in at about $73.6 million, noninstructional staff at about $44.5 million, student financial aid at around $11 million and nonstaff expenses at about $25.3 million.