· board of governors meeting friday, december 6, 2019 trent university – peterborough symons...

BOARD OF GOVERNORS

Meeting Friday, December 6, 2019

Trent University – Peterborough Symons Campus AJM Smith Room, Bata Library

OPEN SESSION: 1:00 p.m. – 2:30 p.m.

AGENDA

1. Welcome and Adoption of Agenda 1:00 p.m. A. La Barge, Chair

2. Declarations of Conflicts of Interest 1:02 p.m. A. La Barge

3. Consent Agenda 1:05 p.m. A. La Barge

Draft motion:That the Consent Agenda be approved [as presented or as amended]

3.1. Approval of Minutes: Open Session (October 4, 2019) (for approval) (pg. 3) 3.2. Financial Update: Report (for information) (pg. 8)3.3. Capital Projects – Status Update: Report (for information) (pg. 16) 3.4. Quarterly Investment Summary: Report (for information) (pg. 21)

4. Chair’s Remarks 1:10 p.m. A. La Barge

5. President’s Report 1:15 p.m. L. Groarke

5.1. Enrolment Update (for information)

6. 1:25 p.m. Indigenous Community Relations Report & Presentation (for information) (pg. 30) VP J. Davis

7. 1:40 p.m. Short-Term Cash Management Policy Report & Draft Policy (for approval) (pg. 34) G. Cubitt / A-VP Stringham

Draft motion:That the Board of Governors approve the Short-Term Cash ManagementPolicy as presented, restricting the implementation of the policy toinvestments that do not exceed one-year in duration, pending further analysisof short-term investment alternatives.

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8. 1:50 p.m. 2018-2019 Annual Pension Financial Statements Report, Draft Financial Statements (for approval) G. Cubitt / A-VP Stringham

Draft motion: That the Board of Governors approve: 1. The Financial Statements of the Contributory Pension Plan for TUFA

Employees of Trent University (Registration Number 1048826) as at June 30,2019; and

2. The Financial Statements of the Contributory Pension Plan for EmployeesRepresented by OPSEU Local 365 and Exempt Administrative Staff of TrentUniversity (Registration Number 0310409) as at June 30, 2019;

3. And further, that the Financial Statements of the Supplemental RetirementArrangement for Members of the Contributory Pension Plan for TUFAEmployees of Trent University as at June 30, 2019 be received forinformation.

9. Northway Estate Bequest 2:00 p.m.Report & Recommendation (for approval) S. Sinclair / VP Davis / A-VP Stringham

Draft Motion: That the Board of Governors authorize the remainder of undesignated interest earned from the Mary Northway Estate since 2015/2016 to continue to be allocated to the cost of the Environmental Sciences Centre until the outstanding balance is fully paid, a total of $288,333.

10. 2:05 p.m. International Tuition FeesReport & Recommendation (for approval) (pg. 102) S. Sinclair / Provost J. Muldoon /

AVP G. Burns Draft Motion: That the Board of Governors:

(a) Approve the international undergraduate tuition rates for 2020/2021 as presented, and furthermore, authorize that these rates by cohort will increase 5% annually for the continuous duration of the student’s program of study; and

(b) Approve the international graduate tuition rates for 2020/2021 as presented.

11. 2020-2021 Operating Budget: Fiscal Environment 2:15 p.m. Report (for discussion/information) (pg. 108) S. Sinclair / A-VP Stringham

12. Meeting Adjournment 2:25 p.m. A. La Barge

(pg. 43)

(pg. 97)


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Board of GovernorsMinutes of the Meeting – Open Session

Peterborough, October 4, 2019

Present: A. La Barge (Chair), D. Cooper Burger, B. Cowie, G. Cubitt, J. Desbiens, P.Dilworth, L. Groarke, R. Jacobson, M. Keefer, S. Rafi (Web), B. Remmelgas, S.Rutherford, S. Sinclair, J. Smith, K. Zatorski, (Vice-President, External Relations &Advancement) J. Davis, (Vice-President, Research and Innovation) N. Emery, (Provost& Vice-President, Academic) J. Muldoon, (Acting Vice-President, Finance &Administration) K. Stringham, (Associate Vice-President, Finance) C. Turk, (UniversitySecretary) Karen Spearing, Richelle Hall (Recording Secretary).

Regrets: C. Bonello, L. Edwards, C. Gray, G. James, T. Smith

[The Secretary confirms that quorum was present for this meeting.]

1. Welcome and Adoption of Agenda. The Chair called the open session of themeeting to order at 1:05 p.m. Hearing no amendments to the agenda and nodeclarations of conflict of interest made it was moved/seconded (Remmelgas/J. Smith),

That the Board approve the agenda as presented. Carried.

2. Consent Agenda. It was moved/seconded (Rutherford/Cubitt),

That the consent agenda be approved as presented. Carried.

2.1 Approval of Minutes. The Open Session of June 15, 2018 was approved aspresented.

2.2 Financial Update. Received as information.2.3 Capital Projects – Update. Received as information.2.4 Investment Performance Summary - Q2. Received as information.

3. Chair’s Remarks. The Chair announced that as part of Trent’s college revitalizationprocess, the Board had implemented college assignments for Board members withthe appointment of Honorary Fellows. The University Secretary would be followingup with each governor informing them of the college they had been assigned.

4. President’s Report. President Groarke reported on recent activities anddevelopments, including:

Partnership with University of Guyana. The President announced that Trentrecently formed a partnership with the University of Guyana aiming to increase andretain the pool of highly skilled workers in Guyana. The program would see $5Minvested with $3.35M to be received by Trent over 5 years to fund 12 scholarshipawards for University of Guyana employees to pursue graduate studies and training

ITEM 3.1 - APPROVAL OF MINUTESOCTOBER 4, 2019


Board of Governors – Open Session Minutes Page 2 of 5

at Trent. The program was targeted at addressing the UN’s Sustainable Development Goals as they apply to Guyana and will focus on WatershedEcosystems and Water Quality, Sustainable Food and Agriculture, IndigenousStudies, Natural Products and Materials Physics, and Chemistry.

Trent Durham Capital Campaign. Vice-President Davis was pleased to report thatthe Trent Durham capital campaign was progressing well towards the $5M goal withalmost $3M raised to date. Faculty and staff at Durham have been very involved inthe campaign with a participation rate of 45%. The Trent Faculty Student Association(TUFA) had donated $25K to the campaign.

Trent Colleges Campaign. The President reported that the University would belaunching a campaign for the Trent colleges, including Peter Robinson College, at theHead of the Trent that weekend with a goal of $1M per college. The University hadalready received a $100K donation for this campaign.

CTV News Coverage. President Groarke reported that on September 12, 2019 CTVNews reported from Trent University with Chief News Anchor and Senior Editor, LisaLaFlamme, having discussions with Chancellor Emeritus, Don Tapscott, and studentsregarding the upcoming federal election.

Ontario Universities Fair (OUF). President Groarke reported that attendance wasup at OUF by 2.7% with 116K visitors in attendance. Trent’s contacts were up by

6.4%, presentation room attendance was up 6% and the number viewbooks handedout increased by 7%. President Groarke recognized all of the volunteers whomanned the booth and Governors La Barge and Sinclair who also attended the fair.

Head of Trent. The President reminded Governors that the Head of the Trent wastaking place that weekend and encouraged them to attend the activities taking place.

5. Board of Governors 2019-20 Leadership Scholarship.

5.1 Presentation from Recipient. The Chair was pleased to introduce theBoard of Governors 2019-20 Leadership Scholarship recipient MaggieDrover. Ms. Drover was enrolled in the medical professional stream with agoal of becoming a nurse practitioner or doctor. Ms. Drover gave apresentation on the positive impact the scholarship had for her as a newstudent. A highly engaged individual, Ms. Drover has volunteered for variousgroups, was an accomplished athlete, a former small business owner and thefounder of a charity called Para El Chiquitos that collects baby supplies for ahospital in La Romona, Dominican Republic. She was first connected to thehospital in the La Romona when she was involved in Gap Medics anorganization that provides inspirational hospital shadowing opportunities inthe Dominican Republic for aspiring medical students. Ms. Drover thankedthe Board for their generous support.




6. Annual Report on Free Speech. Associate Vice-President Nona Robinson

presented the Free Speech report presented to the Higher Education Quality Council of Ontario. Associate Vice-President Robinson reported that there were 793 non-curricular events from January 1, 2019 to August 1, 2019. There were no incidents related to these events that led to a free speech complaint nor were there any complaints made regarding the University or student groups through the Free Speech Policy.

It was moved/seconded (Slepkov/Remmelgas), That the Board of Governors receive Annual Report on Free Speech as information. Carried.

7. Sexual Violence.

7.1 Annual Report on Sexual Violence. Associate Vice-President of Students, Nona Robinson presented the annual report on sexual violence, as mandated by the Ministry of Training, Colleges and Universities. Associate Vice-President Robinson reported that a total of 10 formal complaints/reports were made from January 1, 2018 to December 31, 2018. During the same period, a wide range of awareness/education and supports and services were provided and Trent had engaged in numerous partnerships with community organizations. It was moved/seconded (Cubitt/Remmelgas), That the Board of Governors receive Annual Report on Sexual Violence as information. Carried.

7.2 Board Training – Sexual Violence Policy. Associate Vice-President Robinson, and Sexual Violence Prevention Coordinator, Robyn Ocean, provided the Board with an overview of the various education, resources and services the University provided to students, staff and faculty that focused on prevention, intervention and support, noting that 46 incidents were disclosed from September 2018 to August 2019. AVP Robinson also provided results from the provincial campus climate survey performed by the Ministry in 2018, noting that Trent had positive results.

Associate Vice-President Robinson reported that the Task Force on Sexual Violence was working to address three issues (policy and response procedures evaluation, further public education and prevention programming and off-campus outreach) through working groups. The findings of the working groups were to be submitted in the spring after which they were to be reviewed by Administration and a report submitted to the Board.

8. Special Resolution II.6 – Statement of Investment Policies and Procedures –

Endowment Fund (Proposed Revisions). Governor J. Smith, on behalf of the Audit and Investment Committee, presented the new proposed asset mix and




revised spending policy, now included within the Statement of Investment Policies and Procedures. Following an analysis performed by Aon, the asset mix presented had a breakdown of 45% Global Equities, 30% Universe Bonds and 25% Global Real Estate. Other changes included moving from a purely passive strategy to a passive/active strategy, and to reduce the distribution rate for the spend policy from 4% to 3.5%. Governor Smith noted that the spending policy would be reviewed on an annual basis to ensure it is in line with the needs of the University.

It was moved/seconded (Cubitt/J. Smith), That the Audit & Investment Committee endorse the revisions to Special Resolution II.6 – Statement of Investment Policies and Procedures – Endowment Fund, to facilitate the implementation of the revised asset mix strategy for the endowment fund as approved in principle by the Board of Governors on June 21, 2019; AND FURTHER, that Audit & Investment Committee recommend to the Board of Governors approval of revisions to Special Resolution II.6 – SIP&P – Endowment Fund, and the subsequent rescindment of Special Resolution II.9 – Annual Distribution from the Endowment Fund (as this policy is now embedded into Special Resolution II.6). Carried.

9. Special Resolution II.5 – Statement of Investment Policies and Procedures – Pension Fund, SRA Fund, and Special Investment Fund. Governor J. Smith, on behalf of the Audit and Investment Committee, presented revisions to Special Resolution II.5 – Statement of Investment Policies and Procedures – Pension Fund, SRA Fund, and Special Investments Fund for approval. Changes included the elimination of reference to the SRA Fund, as this fund was no longer funded, as well as housekeeping changes pertaining to the name change of the committee following the committee restructuring in June. It was moved/seconded (J. Smith/Dilworth), That the Board of Governors approve revisions to Special Resolution II.5 – SIP&P – Trent University Pension Fund, Supplemental Retirement Arrangement Fund and Special Investment Fund, renamed as Special Resolution II.5 – Statement of Investment Policies and Procedures – Trent University Pension Fund and Special Investment Fund, as presented. Carried.

10. 2018-19 Audited Financial Statements. Governor Cubitt, as Chair of the Audit and Investment Committee, presented the 2018-19 audited financial statements noting that there were no new areas of concern, with only nine remaining from the previous year, many of which were going to be resolved through the use of a new human resources information system that was in the process of being introduced. For the 2018/2019 fiscal year, Trent University had a total revenue of $196.5M, primarily from government grants and tuition fees, and total expenses of $182.7M, with the majority of the expense related to salaries and benefits, scholarships and bursaries, and supplies, resulting in a total excess of revenue over expense for the




fiscal year of $13.8M. The overall decrease in unrestricted fund balance for the year was $0.5M including the change in internally restricted net assets, change in investment in capital assets, internally endowed amounts and re-measurements related to the University’s pension plans. The unrestricted net assets fund balance deficiency increased to $99.3M at April 30, 2019, of which $79.5M is the pension plan deficiency. The Operating Fund Operating Fund ended the fiscal year with a deficit of $1.5M before fair value and pension actuarial adjustments. This financial result was primarily due to the lack of enrolment growth funding which was communicated to the University after the year end. It was moved/seconded (Cubitt/J. Smith), That the Board of Governors approve the Trent University 2018/2019 Audited Financial Statements, as presented. Carried.

11. Special Resolution I.9 – Trent Lands Committee Terms of Reference (Proposed Revisions). Governor Cooper Burger, as Chair of the Nominating and Governance Committee, presented revisions to the Trent Lands Committee Terms of Reference, Special Resolution I.9, to allow for the appointment of additional members of the Committee. The increase in membership would allow the Committee to fill any gaps in skills set, as well reduce any concerns with quorum when a member is unable to attend. No additional recommendations for appointment were brought forward at this time, however it was noted that Administration was going to proceed with outreach to a potential candidate to gauge interest. It was moved/seconded (Cooper Burger/Jacobson), That the Board of Governors approve revisions to Special Resolution I.9 - Trent Lands Committee Terms of Reference, as presented. Carried.

12. Durham Capital Project – Status Update. Vice-President Stringham reported that work was moving ahead on the Durham capital project and that over the following two weeks the forming and foundation work would be carried out. Administration was planning to go to tender the following week for the work required on the existing building. It was anticipated this work would start after May 1, 2020. It was moved/seconded (Sinclair/Dilworth), That the Board of Governors receive Durham Capital Project-Status Update as information. Carried.

13. Session Adjournment. The open session of the meeting was adjourned at 2:50 p.m.

Karen Spearing Armand La Barge University Secretary Chair



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Board Report

Session: Closed Session; Open Session Action Requested: Decision; Discussion/Direction; Information

To: Board of Governors Date: December 6, 2019 Presented by: Scott Sinclair, Chair – Finance & Property Committee Subject: Financial Update to September 30, 2019

Committee/Board Mandate:

The Board of Governors is responsible for ensuring the financial health of the University and the proper management of its buildings, lands and capital projects. The Finance & Property Committee assists the Board in carrying out these responsibilities by monitoring the institution’s financial, property and capital affairs and making related policy recommendations.

In its finance role, the Committee monitors budget projections and debt levels and recommends operating, ancillary and capital budgets for the approval of the Board of Governors. It recommends levels of student fees, spending authority, loans and lines of credit for Board approval. The Committee makes recommendations to the Board for the approval of any contract or purchase the total value of which exceeds the level of spending established for the President. The Committee may make financial policy recommendations to the Board including but not limited to policies on tuition and ancillary fees, banking, borrowing and purchasing. It may make recommendations to the Board concerning fiscal planning, internal financial controls or other areas affecting the financial health or accountability of the University. The administration may consult with the Committee on the subjects for internal audits and provide follow-up reports.

Motion for Consideration (if applicable):

That the Board of Governors receive updated information on Trent's financial operating performance.

Executive Summary:

Trent's enrolment continues to grow in 2019/2020. Based on the Summer and Fall actual enrolment, and winter enrolment projections, enrolment is currently projected to be 645 FTEs higher than last year and 324 FTEs higher than budgeted. This enrolment growth

ITEM 3.2 - FINANCIAL UPDATEBOARD OPEN SESSION - December 6, 2019

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results in additional net tuition revenue and improves the University’s operating financial position.

An overview of Trent's current financial position as of September 30, 2019 and projection to year-end are attached. These projections are subject to change once enrolment counts and year-end adjustments are finalized. Analysis/Alternatives Considered: Year-to-Date Performance Cash flows are better than the previous year due to timing of tuition revenues. Cash on hand at September 30, 2019 was $67,139,368 compared to $57,959,400 on the same date in 2018.

The year-to-date budget is estimated by prorating the annual budget based on last year’s actual performance to date and other seasonality factors. The year-to-date actual financial performance indicates an unfavourable variance as at September 30, 2019 due primarily to enrolment growth funding assumed in the operating budget which has not yet been received or confirmed. Non-staff expenses, particularly consulting, facilities maintenance and external contracts, are higher year-to-date as a result of timing.

Actual results are subject to change once enrolment numbers are finalized February 1st and year-end adjustments and approved appropriations are determined. As per past practice, all departments may request to carry forward any unspent budgets for future strategic initiatives; these requests are considered closer to the fiscal year-end.

Year-end Projection Based on summer final enrolment, fall registration data through November 1, 2019 with further intake and melt rates consistent with last year, and using budgeted fall-to-winter ratios, Trent is currently projecting undergraduate FTEs will increase from 2018/2019 by 603, resulting in a total of 9,713 undergraduate FTEs, which is 282 FTEs higher than the Board-approved 2019/2020 budget. Graduate FTEs are expected to be 581 FTEs, which is 42 FTEs higher than the Board-approved 2019/2020 budget, bringing the total projected FTEs to 10,295 (rounded) for 2019/2020.

With the increase in enrolment, tuition fees revenue is expected to be approximately $4.5 million more than planned while student financial aid is projected to increase by approximately $319,000 from the budget.

In summary, Trent is currently projecting a shortfall of operating revenue over expenses of approximately $3.5 million, a shortfall of about $3.9 million from the Board-approved budget for the year.

Financial Implications:

The 2019/2020 projected deficit excludes incremental government grant funding of $7.9 million related to the budgeted increase in enrolment.


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Enterprise Risk Assessment:

The financial health of the University is paramount to the University's overall success and ability to fulfill its academic mandate and meet student expectations. Monitoring in-year financial performance against the approved budget is critical to ensuring well-informed decision making regarding the allocation and use of limited resources, and mitigating strategies if financial loss is anticipated. Next Steps:

The next financial update will be provided at the next Finance and Property meeting on January 30, 2020. Alignment with Mission, Vision, Values, Strategic Plan:

To fulfill their responsibilities, Governors should be informed of the University's financial situation. Regular financial updates will maintain Governors' awareness of the University's current financial status, and allow for input and oversight where needed. Such updates also allow for in-year decisions for strategic investments if possible, or mitigation strategies as necessary in alignment with Trent's mission to "foster sustainability, in its environmental, social and economic dimensions, on our campuses and in all aspects of our work" and Trent's Strategic Plan for "financial sustainability: exploring all means necessary to securing a healthy financial future". Compliance with Policy/Legislation:

Complying with a Board of Governors directive, the full Board will receive regular financial updates, through the Finance and Property Committee. Supporting Reference Materials (attached): The following analyses are attached: Appendix A - Cash Position for the period ending September 30, 2019

Appendix B - 2019/2020 Operating Budget Projection as at September 30, 2019

Appendix C - Operating Actual vs Budget for Fiscal 2019/2020 as at September 30, 2019


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Appendix A – Cash Position for the Period Ending September 30, 2019

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-$20,000,000-$15,000,000-$10,000,000-$5,000,000

$0$5,000,000

$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,000$50,000,000$55,000,000$60,000,000$65,000,000$70,000,000$75,000,000$80,000,000$85,000,000$90,000,000$95,000,000

$100,000,000$105,000,000$110,000,000

TRENT UNIVERSITY CASH POSITION FOR 2016-17 to 2019-20 for the period ending September 30, 2019

Credit Line 2016/17 2017/18 2018/19 2019/20


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Appendix B: 2019-20 Operating Budget Projection

($000s) As of September 30, 2019

2019/20

YTD ACTUAL

2019/20 BOARD-

APPROVED ANNUAL BUDGET

2019/20

ANNUAL PROJECTION

ANTICIPATED

ANNUAL VARIANCES

REVENUE

Government grants less Growth Funding $22,075 $54,740 $54,740 $ - Growth Funding 0 7,852 0 (7,852) Tuition fees 45,194 75,490 79,945 4,455 Miscellaneous revenue 513 2,192 2,192 - TOTAL REVENUE $67,783 $140,274 $136,877 $(3,397)

EXPENSES

Instructional staff $22,897 $70,053 $70,223 $(170) Non-instructional staff 16,814 42,798 42,798 - Student financial aid 4,686 12,493 12,812 (319) Non-staff expense 9,358 23,743 23,802 (59) Total expense $53,755 $149,087 $149,635 $(548)

Cost recoveries (4,809) (9,194) (9,194) - TOTAL NET EXPENSE $48,946 $139,893 $140,441 $(548)

EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSE $18,837 $381 $(3,564) $(3,945)

Change in internally restricted assets & endowment transfers

(16) 54 54 -

ANNUAL SURPLUS (DEFICIT) for University Operations $18,821 $435 $(3,510) $(3,945)


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Appendix C: Operating Actual vs Budget FY2019/20

Year-to-date, Projection and Budget by Object ($000s) Report date: September 30, 2019

YTD YTD YTD Annual Annual Annual

Actual Budget Variances Budget Projection Variances REVENUE

Government grants 22,075 26,080 (4,005) 62,592 54,740 (7,852) Tuition 45,194 45,176 19 75,490 79,945 4,455 Miscellaneous revenue 513 258 255 2,192 2,192 - TOTAL REVENUE 67,783 71,514 (3,731) 140,274 136,877 (3,397)

EXPENSE

Salaries & Benefits

Instructional 22,897 23,204 307 70,053 70,223 (170) Academic support 4,410 4,728 317 11,718 11,718 - Library 1,211 1,216 4 2,975 2,975 - Information technology 1,169 989 (180) 2,683 2,683 - Student services 1,403 1,514 111 3,781 3,781 - Facilities management 2,999 2,657 (342) 7,005 7,005 - Administration 3,327 3,262 (65) 8,507 8,507 - External relations 1,169 1,070 (99) 2,663 2,663 - Other 1,125 1,461 337 3,466 3,466 - Total Salaries & Benefits 39,711 40,101 390 112,851 113,021 (170)

Student Financial Aid

Undergraduate 3,382 3,832 450 9,272 9,375 (103) Graduate 671 812 141 2,148 2,137 11 International 633 759 126 1,073 1,300 (227) Total Student Financial Aid 4,686 5,403 717 12,493 12,812 (319)


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YTD YTD YTD Annual Annual Annual Actual Budget Variances Budget Projection Variances

Non-staff expense Utilities

Electricity 525 550 25 2,790 2,790 - Gas 175 177 3 709 709 - Water 51 38 (13) 150 150 - Oil 0 2 2 8 8 - Total Utilities 750 766 16 3,657 3,657 -

Supplies

Computer expenses 1,212 1,026 (187) 1,729 1,729 - Telephone 101 177 75 409 409 - Consulting, legal & professional 292 76 (216) 479 479 - Facilities maintenance 826 604 (221) 1,809 1,809 - Travel 168 114 (53) 698 698 - Library acquisitions 917 1,106 189 1,574 1,574 - External contracts 1,082 707 (376) 2,843 2,843 - Fleming 0 0 0 321 321 - Insurance 362 362 0 452 452 - Professional development 180 159 (21) 479 538 (59) Interest 850 850 0 2,039 2,039 - Municipal taxes 654 654 0 654 654 - Other supplies and expenses 1,964 1,469 (495) 6,601 6,601 - Total Supplies 8,608 7,303 (1,305) 20,086 20,145 (59) Total Non-Staff Expense (including utilities)

9,358

8,069

(1,289)

23,743

23,802

(59)

Cost Recoveries

Facilities management (1,210) (1,261) (51) (3,171) (3,171) -


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YTD YTD YTD Annual Annual Annual Actual Budget Variances Budget Projection Variances

Admin overhead 0 0 0 (1,979) (1,979) - Revenue line items (3,540) (3,588) (48) (3,619) (3,619) - Other recoveries (59) (96) (37) (425) (425) - Total Cost Recoveries (4,809) (4,946) (137) (9,194) (9,194) -

EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSE

18,837

22,885

(4,049)

381

(3,564)

(3,945)

Change in internally restricted 0 0 0 54 54 - Transfer to endowments 16 0 (16) 0 0 -

ANNUAL SURPLUS (DEFICIT)

18,821

22,885

(4,065)

435

(3,510)

(3,945)

SUMMARY

Revenue 67,783 71,514 (3,731) 140,274 136,877 (3,397) Expenses

Salaries and benefits 39,711 40,101 390 112,851 113,021 (170) Student financial aid 4,686 5,403 717 12,493 12,812 (319) Non-staff expense 9,358 8,069 (1,289) 23,743 23,802 (59) Cost recoveries (4,809) (4,946) (137) (9,194) (9,194) -

48,946 48,628 (318) 139,893 140,441 (548)

EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSE

18,837 22,885 (4,049) 381 (3,564) (3,945)

Change in internally restricted 0 0 0 54 54 - Transfer to endowments 16 0 (16) 0 0 - ANNUAL SURPLUS (DEFICIT)

18,821

22,885

(4,065)

435

(3,510)

(3,945)


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Board Report

Session: Closed Session; Open Session Action Requested: Decision; Discussion/Direction; Information To: Board of Governors Date: December 6, 2019 Presented by: Scott Sinclair, Chair – Finance & Property Committee Subject: Capital Projects Update


The Finance & Property Committee is responsible for the overall monitoring of campus capital building programs, stewardship of heritage assets, and makes recommendations to the Board of Governors for the approval of revisions to the Master Plan (siting of new facilities), the appointment of architects, final building designs and major construction contracts.


That the Board of Governors receive this report for information.

Executive Summary:

The following provides an update with respect to capital projects recently completed or currently underway:

2018/2019 Facility Renewal Projects (FRP) It was intended that the 2018/2019 FRP Grant, when announced, be utilized to resume addressing priority deferred maintenance and campus safety issues, as it has in the past. The 2018/2019 FRP grant was finally confirmed by the MTCU in February 2019, with $747k being allocated to Trent University. The funds have been received late in the fiscal year to which they apply and must be fully expended by September 30, 2019. Additionally, a commitment was made three years ago to dedicate 10% of annual FRP monies to accessibility issues on the campuses. In keeping with this principle, approximately $75k has been earmarked for accessibility initiatives, with involvement from Trent’s Accessibility Office and other advocates associated with Trent.

The Grant has now come to a close and the University has fully reported on the following benefits;

ITEM 3.3 - CAPITAL PROJECTS UPDATEBOARD OPEN SESSION - December 6, 2019

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Project Name Location Value Chiller Retrofit Enwayaang-Gzowski College $181,312.89 Accessible Signage Upgrades Various $37,230.85 Exterior Pedestrian Walkways/Stairs/Ramp improvements

Symons campus $41,048.65

CC307 Lecture Hall Champlain College $130,907.47 Pedestrian Bridge Repairs Faryon Bridge & Bata Catwalk $28,216.75 Various Controls on Boilers Champlain and Lady Eaton

Colleges $75,280.41

Various Fire Alarm Panel replacement

Champlain and Lady Eaton Colleges

$139,055.70

Animal Care Humidification repair

Science Complex $31,948.62

Various Flooring Replacements DNA/SC/ESC/corridors/entrances $54,709.63 Roofing & Soffit Replacements Wallis Hall @ Traill College $14,332.63 Piping for walk in freezer/fridge Environmental Science Centre $8,903.91 HVAC-capacitor replacement Science Complex $15,575.55 Heat Exchanger replacement Enwayaang-Gzowski College $14,380.53 HVAC - motor replacement DNA Building $11,555.19 Transformer Repairs OC $5,666.87 Replace Pneumatic valves and actuators

Environmental Science Centre $5,516.92

Water Heater replacement Life & Health Sciences $14,937.57 Total Expenditure $810,580.15 Funding MTCU $747,300.00 Funding Trent Contribution $63,280.15

The University is optimistic with respect to receiving the same fund in 2020 however it is expected to be slightly reduced.

Trent Grounds Operation Relocation The ongoing Trent Lands Plan shall review and address the potential relocation of the Grounds Operation facility. As the Trent Lands Plan progresses, future updates will be provided.

Permeable Parking Areas The University has created approximately 100 additional parking spaces. The project is now complete for 2019 and maintenance and monitoring will begin. The Low Impact Development techniques installed will help reduce the demand on the storm sewer network while encouraging a greener solution and filtering pollutants from the stormwater runoff.


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Future large scale lots will be examined following an operational review of the current infill permeable parking stalls.

Traill Campus Amphitheatre The existing outdoor amenity space bordered by Wallis Hall and Bagnani Hall has deteriorated significantly over the past decade. Additionally, the existing infrastructure within the courtyard at Traill has declined substantially over the past several years. Retaining wall failure and degrading exterior stairs have led to reduced level of service and increased risk. Through various efforts, partial funding has been raised to convert the courtyard outside Wallis Hall to be used for a broader range of outdoor activities. The proposed amphitheater will continue to serve as an outdoor space for students to work and socialize however will have the added benefit of being used for organized stage events. The amphitheatre design has consideration for the existing uses in Wallis Hall and the Trend pub. This integrated use encourages the indoor activity to move outdoors and the same scenario holds true for the outdoor activities being encouraged to interact with indoors. The conceptual works will include poured concrete terraced walls that will double for seating, synthetic turf at each terrace, timber stage, walks and ramps at stage level, tinted concrete replicating the current pavers used throughout Trent, barn board screening and extensive landscaping throughout the plan. This project provides opportunity to incorporate Bagnani Hall into the overall composition of the space. The creation of a welcoming central plaza is created on the north face of Bagnani Hall. This new gathering hub connects the Wallis bridge entry, the new amphitheatre space and Bagnani entrance. The existing undeveloped space south of the Trend provides an opportunity for a desired outdoor gathering space forming the edge of the amphitheatre above. A low seating wall/ planter defines the patio space and provides for informal seating. There are no furnishings provided for the space to maximize occupancy. The current available funding has allowed for the engagement of a Landscape Architect to provide a concept plan for approval. The conceptual plans attached have been reviewed by the Heritage committee with little concern expressed. Plans will be finalized and it is hoped that the works proposed could go to tender early 2020 with proposed construction to occur in the summer of 2020, pending availability of sufficient funds The estimated total project cost is expected to be $350,000-$400,000. Included in this total cost are the planning and design fee for the concept and approval documents, at a cost of approximately $25,000. Further funds are required with the Traill College Principal continuing with efforts to raise additional funds. At present, funding has come from the Jalynn Bennett fund and continuing education funds at Traill, totaling approximately $230,000.


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Traill campus Amphitheatre requires additional funding sources to proceed to construction.


Exceeding capital budgets, or delivering projects late can result in additional financial pressures or negative reputational impacts

Next Steps:

Project completion and project development.

Consultation:

• The Datatel Financial system • VFA Facilities Database • Web Work Order system • Contractor Progress Billings • Heritage Committee

Supporting Reference Materials (attached): Photo One: Athletics permeable parking


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Photo Two: Traill Campus Amphitheatre Concept


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Board Report


To: Board of Governors Date: December 6, 2019 Presented by: Garry Cubitt, Chair – Audit & Investment Committee Subject: Quarterly Investment Review

Committee/Board Mandate: The Audit & Investment Committee is responsible for monitoring results of external audits and ensuring that appropriate financial controls are in place. The Committee monitors the University’s legislative compliance and maintains a watching brief on statutory and accountability requirements. The Committee is also responsible for recommending Board investment policy and for monitoring the performance of the University’s investments.

In its investment role, and in compliance with regulatory and contractual requirements, the Committee reviews and recommends for the approval of the Board of Governors investment policies and procedures, and annual distribution policies. The Board delegates to the Audit & Investment Committee responsibility for the appointment of the custodian/trustees and investment managers for the investment funds held by the University, with the requirement that such decisions be made in accordance with the pension plan texts (if applicable) and be reported to the full Board in a timely manner. The Committee assesses and monitors risks related to its specific responsibilities for investments.

Motion for Consideration (if applicable): That the Board of Governors receive quarterly updates on the performance of its investments.

Executive Summary: For the quarter ending September 30, 2019, all index funds tracked to their respective indices as expected with no material negative influences.

• The Pension Fund and the Special Investment Fund returned 1.6% for the quarter, ranking in the second quartile among Aon’s universe of balanced funds.

• The Endowment Fund returned 1.4% for the quarter, ranking in the third quartile among Aon’s universe of balanced funds.

• The Endowment Lands Fund returned 1.4% for the quarter, ranking in the third quartile among Aon’s universe of balanced funds.

ITEM 3.4 - QUARTERLY INVESTMENT PERFORMANCE REVIEW


of 2 Analysis/Alternatives Considered: The Executive Summary prepared by AON is attached. A more detailed investment review prepared by AON is also available as supplementary information.

Financial Implications: The objective of the Pension Fund is to provide members of the Plans with retirement benefits prescribed und the terms of the Pension Plans. The objective of the Special Investment Fund is to provide eligible members with a Transition Pension.

The objective of the Endowment Fund is to achieve real capital and income growth to offset future distributions which support the University’s teaching/research mission. The Fund must earn a real rate of return of at least 3.5% to meet its annual distribution target and expenses, and maintain the purchasing power of the endowed capital.

The objective of the Endowment Lands Fund (ELF) is for the retention and investment of review for the long-term befit of the University. The University’s long-term goal is to achieve real capital and income growth for capital development or to create or enhance the University’s ability to secure additional revenue from non-traditional sources. The ELF must earn a real rate of return of at least 4.5% to meet its objective.

Enterprise Risk Assessment: The investment funds must meet specific returns in order to meet the Fund objectives statement above. Currently, due to low interest rates, the Pension Fund assets are less than the pension obligations leading to going concern unfunded liabilities and pension solvency deficiencies in both TUFA and OPSEU/Exempt plans. As a result of the pension deficit position, pensions currently rank #2 on the Enterprise Risk Register.

Next Steps: The quarterly investment review is prepared quarterly by AON.

Alignment with Mission, Vision, Values, Strategic Plan: To fulfill their responsibilities, Governors should be informed of the performance of its investments on a regular basis.

Consultation: The quarterly performance review is prepared by AON.

Compliance with Policy/Legislation: Section 4 of the following Statement of Investment Policies and Procedures (SIP&P) requires the Investment Manager to provide a quarterly performance report and a compliance report to the Committee each quarter.

Special Resolution II.5 – Pension Fund, SRA and Special Investment Fund

Special Resolution II.6 – Endowment Fund

Special Resolution II.8 – Endowment Lands Fund

Supporting Reference Materials (attached): The Quarterly Investment Review Executive Summary is attached.

ITEM 3.4 - QUARTERLY INVESTMENT PERFORMANCE REVIEW


Visit the Aon Hewitt Retirement and Investment Website (https://retirement-investment-insights.aon.com/canada); sharing our best thinking.

Trent University Funds | Quarterly Period Ending 30 September 2019

Executive Summary

APPENDIX AITEM 3.4 - QUARTERLY INVESTMENT PERFORMANCE REVIEW


AllocationMarketValue($000)

Performance (%)

1Quarter

1Year

2Years

3Years

4Years

5Years

10Years

Pension Fund* 363,740 1.6 (42) 7.0 (31) 6.6 (37) 6.4 (52) 7.1 (47) 6.1 (70) 7.1 (80)Benchmark 1.6 (42) 6.8 (34) 6.5 (43) 6.3 (55) 7.1 (52) 6.1 (75) 7.1 (82)Value Added 0.0 0.2 0.1 0.1 0.0 0.0 0.0Balanced Funds Median 1.5 6.3 6.1 6.4 7.1 6.6 7.9

Endowment Fund* 70,496 1.4 (58) 6.4 (48) 6.6 (37) 6.5 (42) 7.2 (46) 6.5 (57) 7.4 (77)Benchmark 1.5 (57) 6.4 (45) 6.6 (36) 6.5 (41) 7.2 (46) 6.5 (57) 7.4 (75)Value Added -0.1 0.0 0.0 0.0 0.0 0.0 0.0Balanced Funds Median 1.5 6.3 6.1 6.4 7.1 6.6 7.9Endowment (TDAM Funds) 66,197 1.4 (58) 6.5 (40) 6.7 (33) 6.6 (35) 7.2 (46) 6.5 (57) 7.4 (77)Endowment Benchmark 1.5 (57) 6.4 (45) 6.6 (36) 6.5 (41) 7.2 (46) 6.5 (57) 7.4 (75)Value Added -0.1 0.1 0.1 0.1 0.0 0.0 0.0Balanced Funds Median 1.5 6.3 6.1 6.4 7.1 6.6 7.9NEI SRI Funds 4,298 1.3 (70) 4.3 (80) 5.3 (86) 5.8 (70) - - -NEI SRI Fund Benchmark 1.7 (33) 6.7 (35) 7.1 (27) 6.7 (31) 7.8 (22) 6.9 (39) 7.9 (57)Value Added -0.4 -2.4 -1.8 -0.9 - - -Balanced Funds Median 1.5 6.3 6.1 6.4 7.1 6.6 7.9

Endowment Lands Fund* 3,055 1.4 (58) 6.6 (40) 6.7 (33) 6.6 (35) 7.2 (45) 6.5 (53) -Benchmark 1.5 (57) 6.4 (45) 6.6 (36) 6.5 (41) 7.2 (46) 6.5 (57) 7.4 (75)Value Added -0.1 0.2 0.1 0.1 0.0 0.0 -Balanced Funds Median 1.5 6.3 6.1 6.4 7.1 6.6 7.9

Special Investment Fund* 3,197 1.6 (43) 7.7 (23) 6.4 (44) 5.7 (75) 6.5 (75) 5.5 (92) 6.4 (97)Benchmark 1.6 (42) 7.5 (25) 6.3 (46) 5.6 (79) 6.4 (76) 5.5 (93) 6.4 (97)Value Added 0.0 0.2 0.1 0.1 0.1 0.0 0.0Balanced Funds Median 1.5 6.3 6.1 6.4 7.1 6.6 7.9

Executive Summary - By Plan

Trailing Period PerformanceAs of 30 September 2019

Parentheses contain percentile rankings.* Total fund market value includes cash account balance (if any).

Page 1



Performance (%)2018 2017 2016 2015 2014 2013 2012

Pension Fund -2.8 (65) 8.8 (54) 7.8 (36) 3.2 (92) 9.8 (74) 13.1 (90) 8.0 (80)Benchmark -3.0 (69) 8.7 (54) 7.9 (36) 3.1 (92) 9.8 (74) 13.0 (91) 8.0 (81)Value Added 0.2 0.1 -0.1 0.1 0.0 0.1 0.0Balanced Funds Median -2.4 8.8 7.2 6.0 11.4 17.1 9.0

Endowment Fund -2.5 (51) 9.4 (38) 6.4 (69) 5.5 (59) 9.9 (73) 15.0 (72) 8.8 (54)Benchmark -2.5 (51) 9.5 (35) 6.2 (71) 5.5 (59) 9.9 (73) 15.0 (72) 8.8 (54)Value Added 0.0 -0.1 0.2 0.0 0.0 0.0 0.0Balanced Funds Median -2.4 8.8 7.2 6.0 11.4 17.1 9.0Endowment (TDAM Funds) -2.3 (46) 9.5 (35) 6.1 (73) 5.5 (59) 9.9 (73) 15.0 (72) 8.8 (54)Endowment Benchmark -2.5 (51) 9.5 (35) 6.2 (71) 5.5 (59) 9.9 (73) 15.0 (72) 8.8 (54)Value Added 0.2 0.0 -0.1 0.0 0.0 0.0 0.0Balanced Funds Median -2.4 8.8 7.2 6.0 11.4 17.1 9.0NEI SRI Funds -4.1 (85) 8.2 (67) 13.4 (2) - - - -NEI SRI Fund Benchmark -2.6 (56) 8.6 (60) 9.4 (21) 5.0 (71) 10.9 (61) 15.0 (72) 7.9 (83)Value Added -1.5 -0.4 4.0 - - - -Balanced Funds Median -2.4 8.8 7.2 6.0 11.4 17.1 9.0

Endowment Lands Fund -2.3 (46) 9.5 (35) 6.2 (72) 5.5 (59) 9.9 (73) - -Benchmark -2.5 (51) 9.5 (35) 6.2 (71) 5.5 (59) 9.9 (73) 15.0 (72) 8.8 (54)Value Added 0.2 0.0 0.0 0.0 0.0 - -Balanced Funds Median -2.4 8.8 7.2 6.0 11.4 17.1 9.0

Special Investment Fund -2.4 (48) 7.3 (76) 7.6 (44) 2.0 (93) 9.5 (82) 9.6 (97) 6.9 (90)Benchmark -2.6 (55) 7.3 (76) 7.6 (44) 2.0 (93) 9.6 (81) 9.6 (97) 6.9 (89)Value Added 0.2 0.0 0.0 0.0 -0.1 0.0 0.0Balanced Funds Median -2.4 8.8 7.2 6.0 11.4 17.1 9.0

Executive Summary - By Plan

Calendar Year Performance

Parentheses contain percentile rankings.

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1Quarter 2018 2017 2016

4Years

EndingSep-2019

4Years

EndingSep-2018

4Years

EndingSep-2017

4Years

EndingSep-2016

Canadian Equities

TDAM Emerald Canadian Equity Index 2.5 (55) -8.7 (50) 9.2 (49) 21.0 (36) 9.1 (48) 5.0 (71) 8.4 (69) 7.8 (92)S&P/TSX Composite 2.5 (56) -8.9 (53) 9.1 (52) 21.1 (36) 9.0 (50) 4.9 (74) 8.3 (70) 7.8 (93)Value Added 0.0 0.2 0.1 -0.1 0.1 0.1 0.1 0.0Canadian Equity Median 2.7 -8.8 9.2 19.2 9.0 6.0 9.4 10.5U.S. Equities

TDAM Emerald Pooled U.S. Index 3.0 (33) 4.2 (49) 13.9 (54) 8.1 (36) 13.6 (39) 16.7 (46) 18.6 (35) 21.6 (46)S&P 500 2.9 (35) 4.1 (50) 13.8 (54) 8.1 (36) 13.5 (40) 16.7 (45) 18.6 (34) 21.7 (44)Value Added 0.1 0.1 0.1 0.0 0.1 0.0 0.0 -0.1U.S. Equity Median 2.4 4.0 14.3 5.7 12.6 16.2 17.8 21.4U.S. Equities Hedged

TDAM Emerald Hedged Synthetic U.S. Equity Index 1.4 (71) -6.0 (95) 20.7 (22) 11.1 (21) 12.6 (50) 11.6 (94) 12.4 (97) 12.8 (100)S&P 500 (Hedged) 1.5 (70) -5.7 (94) 21.2 (20) 11.4 (20) 12.8 (49) 12.0 (92) 12.8 (96) 13.3 (100)Value Added -0.1 -0.3 -0.5 -0.3 -0.2 -0.4 -0.4 -0.5U.S. Equity Median 2.4 4.0 14.3 5.7 12.6 16.2 17.8 21.4International Equities

TDAM Emerald International Equity Index 0.2 (44) -5.8 (39) 16.8 (68) -2.4 (57) 6.2 (53) 8.4 (73) 10.2 (84) 13.9 (73)MSCI EAFE (Net) 0.1 (48) -6.1 (39) 16.8 (68) -2.5 (58) 6.2 (55) 8.3 (76) 10.1 (86) 13.8 (76)Value Added 0.1 0.3 0.0 0.1 0.0 0.1 0.1 0.1International Equity Median 0.1 -7.1 18.3 -2.1 6.4 9.6 11.7 15.0Fixed Income

TDAM Emerald Canadian Bond Index 1.2 (58) 1.4 (60) 2.6 (70) 1.6 (90) 3.6 (84) 2.5 (80) 3.7 (70) 4.1 (70)FTSE Canada Universe Bond 1.2 (58) 1.4 (60) 2.5 (71) 1.7 (89) 3.6 (84) 2.5 (80) 3.7 (68) 4.1 (70)Value Added 0.0 0.0 0.1 -0.1 0.0 0.0 0.0 0.0Canadian Bonds Median 1.2 1.5 2.7 2.3 3.8 2.7 3.8 4.2

Executive Summary - Index Manager

Comparative PerformanceAs of 30 September

Returns are expressed as percentages.

Page 3



Executive Summary - Index Manager

Comparative PerformanceAs of 30 September

1Quarter 2018 2017 2016

4Years

EndingSep-2019

4Years

EndingSep-2018

4Years

EndingSep-2017

4Years

EndingSep-2016

Short-Term Investments

TDAM Emerald Short-Term Index 0.5 (33) 1.8 (24) 1.0 (48) 0.9 (30) 1.4 (26) 1.1 (29) 1.0 (34) 1.1 (33)FTSE Canada 91 Day TBill 0.4 (100) 1.4 (100) 0.6 (100) 0.5 (100) 0.9 (100) 0.7 (100) 0.7 (100) 0.8 (100)Value Added 0.1 0.4 0.4 0.4 0.5 0.4 0.3 0.3Money Market Median 0.5 1.7 1.0 0.9 1.3 1.1 1.0 1.1

Returns are expressed as percentages.

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Commentary & Recommendations Executive Summary

As of 30 September 2019

Mandate Comments Recommendations

Pension Fund The Pension Fund returned 1.6% for the quarter ending 30 September 2019, ranking in the second quartile among Aon’s universe of balanced funds.

All index funds tracked their respective indices as expected.

No material negative influences.

No action is required.

Endowment Fund The Endowment Fund returned 1.4% for the quarter ending 30 September 2019, ranking in the third quartile among Aon’s universe of balanced funds.



The total SRI sub-fund, comprising of the NEI Ethical Canadian Equity Fund, the NEI Ethical Global Equity Fund, and the NEI Canadian Bond Fund, returned 1.3%, underperforming its benchmark by 0.4% for the quarter ending 30 September 2019.



Endowment Lands Fund The Endowment Lands Fund returned 1.4% for the quarter ending 30 September 2019, ranking in the third quartile among Aon’s universe of balanced funds.




Special Investment Fund The Special Investment Fund returned 1.6% for the quarter ending 30 September 2019, ranking in the second quartile among Aon’s universe of balanced funds.




Page 5



Aon Hewitt Inc. reconciles the rates of return with each investment manager quarterly. Aon Hewitt Inc. calculates returns from the custodian/trustee statementswhile the managers use different data sources. Occasionally discrepancies occur because of differences in computational procedures, security prices, "tradedate" versus "settlement date" accounting, etc. We monitor these discrepancies closely and find that they generally do not tend to persist over time. However, if amaterial discrepancy arises or persists, we will bring the matter to your attention after discussion with your money manager.

This report may contain slight discrepancies due to rounding in some of the calculations. All data presented is in Canadian dollars unless otherwise stated.

© 2019 Aon Hewitt Inc. (“Aon”)

This report does not constitute accounting, legal or tax advice and should not be relied upon for any such business decisions. This report contains information thatis proprietary to Aon and may not be distributed, reproduced, copied, or amended without Aon’s prior written consent.

Statement of DisclosureDisclosure

As of 30 September 2019

Page 6



Board Report


To: Board of Governors Date: December 6, 2019 Presented by: Julie Davis Subject: Indigenous Community Relations Plan Update

Committee/Board Mandate: One of the Board strategic objectives is to work collaboratively with our host communities, Indigenous peoples, and with municipal, provincial, and federal governments. Motion for Consideration (if applicable): This report is intended as information and as such, there is no motion for consideration.

Executive Summary: In March 2018 the Board of Governors approved a series of recommendations to build trusting and mutually beneficial institutional relationships with the Michi Saagiig communities, to respond to the Truth and Reconciliation Calls to Action, and to reinforce Trent’s commitment to Indigenous knowledge and ways of knowing. Recent steps include the creation of a protocol guidebook, instructional videos about the land acknowledgement and smudging, the conferring of honorific names across the Symons campus, and the unveiling of a treaty display in Bata Library.

Analysis/Alternatives Considered: Michi Saagiig Protocol Guidebook

The protocol guidebook has been completed and print copies have been distributed to a number of locations across both campuses. A digital copy is available through the “Cultural Support” page on the First Peoples House of Learning’s (FPHL) website. Prior to printing, the book was reviewed by the directors of both the Wenjack School and the FPHL, and by Elders from Curve Lake and Hiawatha First Nations. The response to this resource has been overwhelmingly positive by the Trent community, and colleagues at other institutions across Ontario.

ITEM 6.0 - INDIGENOUS COMMUNITY RELATIONS REPORT


of 4 Video Resources

To further support the Trent community, two video resources were created and posted to the University’s YouTube channel, and to the FPHL website. The first video explains our land acknowledgment, why we say it and ways to modify or personalize the statement. Elder Dr. Keith Knott from Curve Lake assisted in reviewing the video script and participated in the filming.

A second video explains the purpose of a smudge, and walks the viewer through how to participate in this ceremony. As Trent is a smudge-friendly campus, we wanted to ensure students and employees feel comfortable to participate when the opportunity to do so arises. This was also overseen by Elder Dr. Keith Knott and led by staff from the FPHL.

Treaty Unveiling

Entitled ‘The Land on Which Trent Sits’, the installation of the Williams Treaty and Treaty 20 were unveiled in Bata Library on Friday, November 1, 2019. The installation includes an overview of the Treaties in both English and Anishinaabemowin, a copy of the Williams Treaty beside a plain-text transcription, a map overlaying the treaties on Southern Ontario, and the first page of Treaty 20, with each of the four signatory pages from Mud Lake (Curve Lake), Rice Lake (Hiawatha), Alderville and Scugog Island First Nations.

Elder Doug Williams, Knowledge Holder Anne Taylor and Chief Emily Whetung, all from Curve Lake participated in the unveiling.

A location for the Durham display is yet to be determined.

Honorific Namings

Trent University officially conferred two honorific names through Ceremony and celebration on Friday, November 1, 2019, during the Indigenous Insights event.

Mnidoowag A‘Kiing (man-uh-doh-WUG ah-KING): The traditional area next to Enwayaang, featuring the tipi and medicine garden, this name means The Spirits Land. This refers to the spirits who are being called to the land in ceremony. This name was conferred by Elder Doug Williams during a sunrise ceremony. Signage at the entrance to Mnidoowag A’Kiing has been updated to reflect the new name, and its meaning. Giizhigaatig (gee-shig-AWE-tig): Bata Library, 4th floor Indigenous room. This name means Cedar – Sky Tree and it honours the importance of the Cedar, one of the sacred medicines of the Anishinaabe that was placed here in Creation, and the name reaches to the sky. This was conferred by Knowledge Holder Anne Taylor. The room features donated art representing the Inuit, Métis, and First Nations, to reflect the diverse Indigenous population at Trent. Enwayaang: over the summer, directional signage across campus was been updated to include Enwayaang, and signage on the exterior of the building features the revised



of 4 spelling (incorporating the Michi Saagiig dialect). The Trent website and online campus map reflects the spelling, aside from historical references in PDF documents.

Visits to Community

As previously reported, a delegation visited Curve Lake Council in February 2019. Armand LaBarge, Julie Davis and Alison Scholl presented to Hiawatha First Nation Council on May 15, 2019, and Dawn Lavell-Harvard and Alison Scholl visited with the Education Manager at Alderville First Nation on June 11, 2019. A delegation of Julie Davis, Scott Henderson, Dawn Lavell-Harvard and Hailey Wright met with the Mississauga’s of Scugog Island FN Council on September 23, 2019.

Scheduling is underway for visits in 2020 to the four communities, with plans to meet with the Métis Nation of Ontario as well.

Consultation Officers Meeting

Regular meetings have continued with Michi Saagiig Consultation Officers from Curve Lake, Alderville, and Hiawatha First Nations. Topics of conversation have focused on the Trent Lands & Nature Areas Plan process and progress, the Symons campus archaeology master plan, and the Cleantech Commons.

Elders & Traditional Knowledge Keepers Council

The Elders & Traditional Knowledge Keepers Council continues to meet and offer support and guidance to the First Peoples House of Learning and to Trent as a whole. The council has been serving as a steering committee for the Indigenous engagement portion of the Trent Lands & Nature Areas Plan. Currently, we are seeking advice and working together to increase the visibility of the Michi Saagiig at Trent.

Financial Implications: Funding and support for Indigenous Community Relations and naming/ installations has been supported by philanthropic donations, and related budgets.

Enterprise Risk Assessment: It is important that Trent's leadership in Indigenous Studies academically, is also reflected in our administrative and governance practices.

Next Steps: This report is presented as information. Community Relations will continue with activities heavily focused on the Trent Lands and Nature Areas Plan, recognition and community relationship building.

Alignment with Mission, Vision, Values, Strategic Plan: Board Strategic Objective #7: Working collaboratively with our host communities, Indigenous peoples, and with municipal, provincial and federal governments.



of 4 Trent Mission excerpt: Remain at the forefront of Indigenous education and scholarship; Develop strong partnerships and collaborations with external communities, professions, and other institutions, as well as within our Colleges, departments, and programs;

Trent Vision excerpt: We foster an environment where Indigenous knowledges are respected and recognized as a valid means by which to understand the world.

Consultation: Meetings with the Miichi Saagiig Chiefs, Councils, land consultation officers Meetings of the ETKKC (Elders & Traditional Knowledge Keepers Council) Director, Chanie Wenjack School of Indigenous Studies

Director, First People House of Learning

Compliance with Policy/Legislation: NA

Supporting Reference Materials (attached): A copy of the Michi Saagiig Protocol guidebook has been provided to members of the Board of Governors.



Board Report


To: Board of Governors Date: December 6, 2019 Presented by: Garry Cubitt, Chair – Audit & Investment Committee Subject: Short-term Cash Management

Committee/Board Mandate: The Audit & Investment Committee is responsible for monitoring results of external audits and ensuring that appropriate financial controls are in place. The Committee monitors the University’s legislative compliance and maintains a watching brief on statutory and accountability requirements. The Committee is also responsible for recommending Board investment policy and for monitoring the performance of the University’s investments.

In its investment role, and in compliance with regulatory and contractual requirements, the Committee reviews and recommends for the approval of the Board of Governors: investment policies and procedures, and annual distribution policies. The Board delegates to the Audit & Investment Committee responsibility for the appointment of the custodian/trustees and investment managers for the investment funds held by the University, with the requirement that such decisions be reported to the full Board in a timely manner. The Committee may also assist the administration with the selection of investment performance appraisal services. The Committee assesses and monitors risks related to its specific responsibilities for investments.

Motion for Consideration (if applicable): That the Board of Governors approve the Short-Term Cash Management Policy as presented, restricting the implementation of the policy to investments that do not exceed one-year in duration, pending further analysis of short-term investment alternatives. Executive Summary: The University has excess cash not required for immediate operations. The cash on hand balance in the current year to September 30, 2019 has ranged from $36 million to $67 million with an average cash balance of $46 million. Cash deposits up to $60 million in the current account are earning interest at a rate of Canadian prime less 1.75%, which has yielded an effective interest rate of 2.20% since November 2018.

ITEM 7 - SHORT-TERM CASH MANAGEMENT POLICY


of 4 Currently, the University’s average monthly cash expenditures are approximately $16 million, with average monthly salaries and benefits of about $10 million. As a result, the University has an estimated $20 million to $51 million in excess cash on hand, which could be earning an additional $70,000 to $178,500 annually if more strategically invested in a manner that balances investment returns and principal protection with daily cash flow needs and liquidity demands.

Analysis/Alternatives Considered: At its September 19, 2016 meeting, the Chair of the Audit Committee reported back to management from the restricted session, requesting that management undertake a review relating to the cash flow budget with a report back to the Audit Committee. The Committee noted the historical and significant cash balances carried by the University. On advice received that such balances were rarely accessed and that a cash flow projection could be undertaken to better ascribe reasonable flexibility, the Committee requested that management and the Finance Department examine cash flow needs annually with consideration given to capital investments and other commitments for identified surpluses. Shortly following this meeting, this initiative was delayed as there was a change in personnel, with a new AVP Finance joining the Trent team in mid-November 2016 with an initial focus on the debt restructuring and bond issuance.

The debt restructuring and the Bata Library Transformation project (for which the proceeds from the bond issuance were used) are now substantially complete. Cash balances remain in excess of funds required for daily operations. Currently, the University’s average monthly cash expenditures are approximately $16 million, with average monthly salaries and benefits of about $10 million. As a result, the University has an estimated $20 million to $51 million in excess cash on hand. It is desirable that the University invest its surplus cash in a manner which will provide the optimal blend of investment returns and principal protection while meeting its daily cash flow and liquidity demands.

Appendix A provides a recommended Short-Term Cash Investment Policy for consideration by the Audit and Investment Committee and Board of Governors.

Financial Implications: Cash Balances

The University has 8 bank accounts, most of which act as clearing accounts for specific activity (payroll, US transactions, wire transfers, etc.) with nominal account balances. The current account is used for general operating activity and the cash on hand balance in this account has not fallen below $20 million since December 29, 2016 and has not fallen below $30 million since the debenture issuance February 17, 2017. The following table indicates the range, average and median balances for each fiscal year from May 1, 2012 to September 30, 2019.



of 4

Highest Balance

Lowest Balance

Average Balance

Median Balance

2012/2013 $ 34,506,664 $ (4,215,051) $ 15,097,639 $ 17,505,561 2013/2014 $ 38,002,424 $ 8,491,165 $ 23,884,121 $ 24,447,112 2014/2015 $ 35,877,860 $ 9,472,605 $ 23,559,894 $ 24,857,500 2015/2016 $ 42,724,026 $ 14,933,780 $ 28,098,383 $ 28,549,870 2016/2017 $104,185,219 $ 10,190,850 $ 29,923,550 $ 28,977,541 2017/2018 $ 63,987,260 $ 20,324,377 $ 41,931,274 $ 43,805,391 2018/2019 $ 67,794,659 $ 34,676,629 $ 47,897,096 $ 46,257,868 2019/2020* $ 67,308,044 $ 36,391,683 $ 46,536,631 $ 44,311,393

*May 1, 2019 to September 30, 2019

In addition, the University has available to it an operating line of credit of up to $6 million, with an automatic bulge to $12 million during two low cash flow periods: June 15 to August 31 and December 1 to January 15 each year. This overdraft line of credit has not been required since August 2012.

Appendix B graphically depicts the cash position for the past three fiscal periods and the current year to September 30, 2019.

Interest Earned

In January 2018, the Finance Department requested from BMO (current bank provider) and were approved for a cap increase from $30 million to $60 million. Cash deposits up to the cap currently earn interest at a rate of Canadian prime minus 1.75%. Canadian prime has been 3.95% since November 2018, yielding an effective interest rate of 2.20% over the last eleven months. For the past three fiscal periods and the current year to September 30, 2019, interest earned was as follows:

Average Interest Rate Interest Earned

2016/2017 0.950% $262,922

2017/2018 1.388% $534,215

2018/2019 2.033% $940,444

2019/2020* 2.200% $387,635 (extrapolates to $930,000

for year)

*May 1, 2019 to September 30, 2019

Based on very preliminary inquiries, investing in GICs for a fixed period of 180 days to 2 years could yield interest rates of 2.25% to 2.55%. An extra 35 bps could earn the University an additional $70,000 annually on excess cash of $20 million or an additional $178,500 annually on excess cash of $51 million.



of 4 Enterprise Risk Assessment: Investment of excess cash not required for immediate operations poses very little risk but provides an opportunity for additional interest revenue for the University. Investments shall remain sufficiently liquid in order to meet all reasonably anticipated operating and capital requirements and shall preserve the original capital while attaining a competitive rate of return.

Next Steps: The short-term cash investment policy is tracking to the Board of Governors for approval on December 6, 2019. Once the policy is approved, the AVP Finance will invest excess cash in accordance with the policy for a duration not to exceed one-year, and will conduct further analysis of short-term investment alternatives to be brought forward to the next Committee meeting.

Alignment with Mission, Vision, Values, Strategic Plan: The proposed short-term investment policy and cash management strategy is aligned with the University’s strategic objectives of attaining financial sustainability by “exploring all means necessary to securing a healthy financial future.”

Consultation: Several short-term cash investment policies of other universities across Canada were reviewed.

Compliance with Policy/Legislation: In accordance with Board By-law #1 Sec. 28 – Investment of Funds, the funds of the University not immediately required for its purposes and the proceeds of all property that come into the hands of the Board, subject to any trust or trusts affecting them, may be invested and re-invested from time to time in such investments as the Board in its absolute discretion, deems meet.

Supporting Reference Materials (attached): Appendix A – Short Cash Investment Policy Appendix B – Cash Position for 2016/2017 to September 30, 2019



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APPENDIX A

Short Term Cash Investment Policy Category: Board of Governors Approval: Board of Governors Responsibility: Associate Vice-President, Finance Date: November 2019

Purpose/Reason for Policy: The purpose of the policy is to establish guidelines, which will facilitate effective management of Trent University’s cash balances. In the course of operations, the University accumulates cash balances, which fluctuate during the fiscal year. Although the funds are committed for specific purposes, the use of the committed funds is not always immediate and thus significant cash balances can accumulate. It is desirable that the University both protect and optimize the investment earnings on excess cash balances; therefore, the excess funds not immediately required for operations should be invested with appropriate security, liquidity and diversification constraints.

Scope of this Policy: The rules below do not include Endowment or Pension Funds, which are covered by a separate Investment Policy overseen by the Audit & Investment Committee of the Board of Governors.

Policy Statement: The Board of Governors is responsible for assets invested by the University. Responsibility for investment management of short-term investments has been delegated to the Financial Services Department, under the direction of the Associate Vice-President, Finance.

The Financial Services Department will:

i. Invest the excess cash funds in accordance with this Policy and related Procedures

ii. Provide reports regarding past performance and compliance with the Policy;

iii. Manage cash flow to meet liquidity needs;

iv. Liaise with the Investment Managers/Agent and Custodian.

Investment Objectives: The investment of excess cash balances must satisfy the following investment objectives:

• Capital Preservation – Security of the invested funds must be a prime consideration in selection of any investment. Investments shall be undertaken in a manner that ensures the preservation of capital in the overall portfolio whilst managing credit risk and interest rate risk;



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• Liquidity – A high level of liquidity must be maintained in the portfolio of investments in order to meet all reasonably anticipated operating and capital requirements and to provide the ability to adjust the portfolio in changing market conditions. This will be achieved by limiting investments to readily marketable securities;

• Maturity Terms – Maturity terms are selected which ensure that sufficient cash resources are available to meet obligations as they become due;

• Return on Investment – Investment yield, while an important factor, will be subordinate to security and liquidity considerations. The portfolio will be constructed with the objective of attaining a competitive rate of return while meeting the other objectives;

• Manageability – Given that the University has limited staff resources, the investment strategy must be manageable without a requirement for day to day management.

Permitted Investments: Cash held by the University that is not immediately required for operations may only be invested in one or more of the following:

i. Cash on hand and demand deposits;

ii. Treasury bills issued by the federal and provincial governments and their agencies;

iii. Obligations of trust companies and Canadian and foreign banks chartered to operate in Canada, including bankers’ acceptances and bearer deposit notes;

iv. Guaranteed Investment Certificates;

v. Federal/ Provincial Bonds;

vi. Municipal Bonds;

vii. Commercial paper and term deposits, and

viii. Bank issued Asset Backed Commercial Paper.

Minimum Quality Standards: To ensure the University’s risk is minimized, the investment portfolio must maintain the following minimum quality standards:

i. The minimum quality standard for individual short-term investments is “R-1 mid” or equivalent and for bonds, a debt rating of “A” or higher as rated by a recognized bond rating agency, at the time of purchase.

ii. All investments shall be reasonably liquid with no term to maturity greater than 2 years and a minimum of 30% of the portfolio invested in securities with terms of maturity of less than 1 year.

iii. For the purposes of this Policy, the following rating agencies shall be considered to be “recognized bond rating agencies”:

a) Dominion Bond Rating Services;



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b) Standard and Poor’s; and

c) Moody’s Investors Services.

Diversification: The cumulative investment of any one money market investment will not exceed 35% of the total portfolio except for the following:

• Canadian Chartered Banks – deposit;

• Government of Canada T-Bills, Notes & Bonds – unlimited;

• Crown Corporations & Agencies, Government of Canada guaranteed Notes – unlimited.

It is the intention of this policy to rebalance the portfolio on a quarterly basis through changes in cash balances or by redirecting funds between investments.

Prohibited Investments: In order to meet the University’s minimum risk tolerance, the following investments are prohibited:

i. Equity investments;

ii. Pooled investment funds;

iii. Non-bank issued Asset-Backed Commercial Paper;

iv. Any investment not specifically permitted by the Policy.

Approval Authority: All investing activities are to be approved according to the following:

i. Term to Maturity of less than one year; any two of the following: • Vice-President (Finance and Administration) • Associate Vice-President, Finance • Manager, Reporting Services • President • Vice-President (Academic and Provost)

ii. Term to Maturity exceeding one year; Vice-President (Finance and Administration) plus any

one of the following: • Associate Vice-President, Finance • President • Vice-President (Academic and Provost)

Records & Accounting: Records of investing activities, including matured and outstanding investments will be held and maintained by Financial Services. The Manager, Reporting Services is responsible for ensuring that the investing transactions are accounted for and disclosed in accordance with the generally accepted accounting principles and the University’s accounting policies and practices.

Performance Measurement:



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The primary objective for the Fund is to earn a rate of return, net of fees, that exceeds the rate of return earned on Current Account bank balance. The annual report will include appropriate benchmarks.

Reporting: A report on the Short-term Investment of Excess Cash shall be submitted annually by Financial Services to the Audit & Investment Committee providing performance data with appropriate benchmark comparisons and information on compliance with the Policy.

Contact Officer: Associate Vice-President, Finance

Date for Next Review: November 2024

Related Policies, Procedures & Guidelines: a) N/A

Policies Superseded by This Policy: a) N/A



-$20,000,000-$15,000,000-$10,000,000

-$5,000,000$0

$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,000$50,000,000$55,000,000$60,000,000$65,000,000$70,000,000$75,000,000$80,000,000$85,000,000$90,000,000$95,000,000

$100,000,000$105,000,000$110,000,000

TRENT UNIVERSITY CASH POSITION FOR 2016-17 to 2019-20 for the period ending September 30, 2019

Credit Line 2016/17 2017/18 2018/19 2019/20

APPENDIX BITEM 7 - SHORT-TERM CASH MANAGEMENT POLICY


Board Report


To: Board of Governors Date: December 6, 2019 Presented by: Gary Cubitt, Chair – Audit & Investment Committee Subject: 2018/2019 Audited Pension Plan Financial Statements

Committee/Board Mandate: The Audit & Investment Committee is responsible for monitoring results of external audits and ensuring that appropriate financial controls are in place. The Committee monitors the University’s legislative compliance and maintains a watching brief on statutory and accountability requirements.

In its audit role, the Committee:

• Receives reports on the results of the pension external audits, reviews the independence of the auditors and meets with the external auditors privately at least once per year;

• Reviews and recommends for Board approval the annual pension plan financial statements;

• May make recommendations concerning internal financial controls, request additional reports from the administration or auditors on matters of concern, or may require a meeting with legal counsel to seek advice on a major audit-related issue; and

• Will assess and monitor risks related to its responsibilities for audit and statutory compliance matters.

Motion for Consideration (if applicable): That the Board of Governors approve:

1. The Financial Statements of the Contributory Pension Plan for TUFA Employees of Trent University (Registration Number 1048826) dated June 30, 2019 as presented; and

2. The Financial Statements of the Contributory Pension Plan for Employees Represented by OPSEU Local 365 and Exempt Administrative Staff of Trent University (Registration Number 0310409) dated June 30, 2019 as presented;

ITEM 8 - AUDITED PENSION FINANCIAL STATEMENTS


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3. And further, that the Financial Statements of the Supplemental Retirement Arrangement for Members of the Contributory Pension Plan for TUFA Employees of Trent University date June 30, 2018 be received for information.

Executive Summary: KPMG completed the fieldwork for the external audits of the University’s contributory defined benefit pension plans for TUFA Employees (TUFA Plan), for OPSEU Local 365 and Exempt Administrative Staff (OPSEU/Exempt Plan), and for the Supplemental Retirement Arrangement (SRA) in October 2019. In their opinion, the financial statements present fairly, in all material respects, the financial position of each of the Contributory Pension Plans and SRA as at June 30, 2019, and the changes in net assets available for benefits, and the changes in the pension obligation for the year then ended in accordance with Canadian accounting standards for pension plans. The statements will be dated on the date of Board approval, anticipated December 6, 2019.

As at June 30, 2019:

• The TUFA Plan had net assets available for benefits of $218.2 million and a pension obligation of $252.9 million resulting in a deficiency of $34.7 million.

• The OPSEU/Exempt Plan had net assets available for benefits of $141.2 million and a pension obligation of $155.3 million resulting in a deficiency of $14.1 million.

• The SRA had no net assets available for benefits and a pension obligation of

$27.7 million resulting in a deficiency of $27.7 million.

Analysis/Alternatives Considered: The Pension Plans’ financial statements are presented on a going concern basis and present the financial position of the Plans as a separate financial reporting entity independent of the University as the sponsor of the Plans and the members.

The following summarizes the financial position of the Plans as at June 30, 2019:

TUFA Plan OSPEU/ Exempt Plan

TUFA SRA

Net Assets Available for Benefits $218,201,220 $141,233,096 $ NIL Pension Obligation $252,920,364 $155,356,944 $27,658,810 Deficiency of Net Assets Available for Benefits over Pension Obligation

$(34,719,144)

$(14,123,848)

$(27,658,810)

Increase (Decrease) in Net Assets Available for Benefits

$11,894,388 $9,837,219 $(649,399)

Decrease (Increase) in Pension Obligation

$(17,071,760) $(11,075,212) $(1,005,857)

Decrease (Increase) in Deficiency from Prior Year

$(5,177,372)

$(1,237,993)

$(1,655,256)



of 4 Financial Implications: TUFA Plan

The TUFA Plan represents approximately 60.7% of the total Master Trust Fund.

The most recent actuarial valuation filed with the Financial Services Regulatory Authority of Ontario (FSRA) for this Plan was dated June 30, 2016. Based on this valuation, the University’s current service cost is 10.57% while the employee contribution rate is 9.0% of salaries. Effective July 1, 2017, the University’s special payments increased by $1,339,135 as a result of new solvency special payments required in addition to the $4,586,040 in going concern special payments.

The pension obligation is actuarially determined based on the actuarial projection of the July 1, 2018 annual valuation results. The assumptions used in determining the actuarial value were developed by reference to expected long-term market conditions. The long-term actuarial assumptions used include a discount rate of 5.60% (5.25% in 2017/2018), an inflation rate of 2.00% (2.00% in 2017/2018) and a salary escalation rate of 3.75% (same in 2017/2018).

The June 30, 2016 actuarial valuation filed resulted in a solvency deficit of $107,185,605 and a going concern unfunded liability of $37,275,507. The next actuarial valuation filing year for TUFA is July 1, 2019. Based on the new funding rules and the expiration of the current solvency relief, annual special solvency payments are expected to increase by approximately $4.2 million commencing July 1, 2020. The University is seeking further solvency relief or a standby letter of credit to defer incremental solvency contributions from the Ministry of Finance until such time as the TUFA plan can be transitioned into the UPP, a jointly sponsored pension plan that will eliminate the requirement for solvency special payments. The anticipated conversion date is January 1, 2022.

OPSEU/Exempt Plan

The OPSEU/Exempt Plan represents approximately 39.3% of the total Master Trust Fund.

The most recent actuarial valuation filed with FSRA for this Plan was dated July 1, 2017. Based on this valuation, the University’s current service cost is 10.61%, while the employee contributions rate is 9.0% of salaries. Effective July 1, 2018, the University’s special payments increased to $1,567,453 for solvency (up from $201,346) and to $1,799,042 for going concern (up from $924,962).

The pension obligation is actuarially determined based on the actuarial projection of the July 1, 2018 annual valuation results, using the same assumptions as described above for the TUFA plan.

The July 1, 2017 actuarial valuation filed resulted in a solvency deficit of $58,038,443 and a going concern unfunded liability of $15,461,739. The next actuarial valuation filing year for OPSEU/Exempt is July 1, 2020.

Supplemental Retirement Arrangement for TUFA

The SRA is not a registered pension plan and these financial statements are not required to be filed with a pension regulation authority.



of 4 As per the July 2016 collective agreement, there were no contributions to the SRA during the fiscal year. Monthly retirement benefits were paid out from the SRA for July to October 2018. In November 2018, the assets of the SRA were liquidated and in March 2019 the assets were fully depleted. Since liquidation, benefit payments are being administered on a pay as you go basis by Trent University.

The pension obligation is actuarially determined based on the actuarial projection of the July 1, 2018 annual valuation results, using the same assumptions as described above for the TUFA plan.

With the assets fully depleted, 2018/2019 will be the final financial statement for the SRA.

Enterprise Risk Assessment: An external audit of the Pension Plans and SRA provides full assurance to the users of the financial statements that the Pension Plans’ accounting records are fair, complete, and in adherence with generally accepted accounting principles, industry standards and regulatory requirements. An external audit process ensures the University’s internal controls, processes, guidelines and policies are adequate, effective, and in compliance with governmental requirements, industry standards, and company policies, and that reporting mechanisms prevent material errors in financial statements.

Next Steps: As part of the ongoing administration of pension plans registered in Ontario, the Pension Benefits Act requires the audited financial statements of the registered pension plans be filed with FSRA on an annual basis within six months of the plan year end.

Alignment with Mission, Vision, Values, Strategic Plan: To fulfill their responsibilities, Governors should be informed of the Pension Plans' financial situation. The report on the Pension Plans’ Audited Financial Statements provides Governors with awareness of the Pension Plans' current financial status, and allows for input and oversight where needed.

Consultation: The external audit of the Pension Plans’ financial statements was conducted by KPMG, LLP. The Pension valuation information was provided by AON, including the pension obligation at June 30, 2019 based on the liability rolled forward from the June 1, 2018 valuation results. Compliance with Policy/Legislation: In accordance with The Trent University Act, 1962-63, section 31, the accounts of the Pension Plans shall be audited at least once a year by an auditor appointed by the Board of Governors. The financial statements of the Pension Plans have been prepared by management in accordance with Canadian accounting standards for pension plans.

Supporting Reference Materials (attached): The detailed audited financial statements of the Pension Plans are attached.



PageNumber

INDEPENDENT AUDITORS' REPORT 1 - 3

FINANCIAL STATEMENTS

Statement of Financial Position 4

Statement of Changes in Net Assets Available for Benefits 5

Statement of Changes in Pension Obligation 6

Notes to the Financial Statements 7 - 18

Table of Contents

Financial Statements of

THE CONTRIBUTORY PENSION PLANFOR TUFA EMPLOYEES OF

TRENT UNIVERSITY(Registration Number 1048826)

June 30, 2019

DRAFT November 12, 2019

APPENDIX AITEM 8 - AUDITED PENSION FINANCIAL STATEMENTS


INDEPENDENT AUDITORS' REPORT

To the Board of Governors of Trent University

Opinion

We have audited the financial statements of the Contributory Pension Plan for

TUFA Employees of Trent University (the “Entity”), which comprise:

• the statement of financial position as at June 30, 2019

• the statement of changes in net assets available for benefits for the year then ended

• the statement of changes in pension obligation for the year then ended

• and notes to the financial statements, including a summary of significant

accounting policies

(Hereinafter referred to as the “financial statements”).

In our opinion, the accompanying financial statements, present fairly, in all

material respects, the financial position of the Entity as at June 30, 2019, and the changes in its net assets available for benefits and the changes in pension obligation for the year then ended in accordance with Canadian Accounting

standards for pension plans.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further

described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report.

We are independent of the Entity in accordance with the ethical requirements

that are relevant to our audit of the financial statements in Canada and we have fulfilled our other responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian Accounting standards for

pension plans, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.



In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable,

matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Entity’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud

or error, and to issue an auditors’ report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that

an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional

skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit

procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is

higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control.

• Obtain an understanding of internal control relevant to the audit in order to

design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by

management.



• Conclude on the appropriateness of management's use of the going concern

basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions

are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Entity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements

represent the underlying transactions and events in a manner that achieves fair presentation.

• Communicate with those charged with governance regarding, among other

matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we

identify during our audit.

Chartered Professional Accountants, Licensed Public Accountants

Kingston, Canada



4

THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYStatement of Financial PositionJune 30, 2019

2019 2018

ASSETSContributions receivable

Members 260,007$ 256,989$ University 799,117 795,572

Investment in Master Trust Fund (note 3) 217,197,429 205,325,086

218,256,553 206,377,647

LIABILITIESAccrued fees, expenses and benefit payments 55,333 70,815

NET ASSETS AVAILABLE FOR BENEFITS 218,201,220 206,306,832

PENSION OBLIGATION (note 7) 252,920,364 235,848,604

DEFICIENCY OF NET ASSETS AVAILABLE FOR BENEFITS OVER PENSION OBLIGATION (34,719,144)$ (29,541,772)$

Solvency deficit obligations (note 8)

Subsequent event (note 10)

The accompanying notes are an integral part of the financial statements.

Approved by the Board of Governors

Governor

Governor



5

THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYStatement of Changes in Net Assets Available for BenefitsYear Ended June 30, 2019

2019 2018

INCREASE IN ASSETSContributions

Employer current service contributions 3,683,951$ 3,630,587$ Members' current service contributions 3,126,093 3,076,016 Members' past service contributions 29,675 13,431 Employer special payments (note 8) 5,925,175 5,925,175

12,764,894 12,645,209

Investment incomeInterest 2,432,024 2,276,012 Dividends 3,431,185 3,338,668

5,863,209 5,614,680 Net realized investment gains 3,848,375 4,546,137 Current year change in fair value of investments 2,142,533 3,130,378

11,854,117 13,291,195

24,619,011 25,936,404

DECREASE IN ASSETSBenefits paid

Retirement benefits paid 12,062,897 11,529,662 Death benefits, withdrawal refunds and transfers 310,535 1,405,640

Administrative expensesInvestment management fees 80,891 86,565 Actuarial and pension administration fees 130,510 112,620 Trustee fees 25,935 68,862 Audit fees 10,735 12,916 Consulting fees 28,264 25,741 Administration and registration fees (note 11) 86,025 82,916 HST rebate (11,169) (13,554)

12,724,623 13,311,368

NET INCREASE IN ASSETS AVAILABLE FOR BENEFITS 11,894,388 12,625,036

NET ASSETS AVAILABLE FOR BENEFITS - beginning of year 206,306,832 193,681,796

NET ASSETS AVAILABLE FOR BENEFITS - end of year 218,201,220$ 206,306,832$




6

THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYStatement of Changes in Pension ObligationYear Ended June 30, 2019

2019 2018

CHANGE IN PENSION OBLIGATION

Interest on accrued benefits 13,562,778$ 11,927,282$

Net experience gain (183,467) (1,125,685)

Indexation loss - 712,253 Benefits accrued 6,703,683 6,405,298

Benefits paid, refunds and transfers (12,373,432) (12,935,302)

Change in actuarial assumptions 9,362,198 8,441,266

NET INCREASE IN PENSION OBLIGATION 17,071,760 13,425,112

PENSION OBLIGATION - beginning of year 235,848,604 222,423,492

PENSION OBLIGATION - end of year 252,920,364$ 235,848,604$




7

THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYNotes to the Financial StatementsJune 30, 2019

1. DESCRIPTION OF PLAN

(a) General

(b) Funding

(c) Retirement benefits

(d) Death benefits

(e) Withdrawal refunds and transfers

(f) Income taxes

The following description of the Contributory Pension Plan for TUFA Employees of Trent University (the Plan)is provided for general information purposes only. For more complete information reference should be madeto the Plan Agreement.

The Plan is a mandatory contributory defined benefit pension plan for members of Trent University FacultyAssociation (TUFA) of Trent University and is registered under the Pension Benefits Act of Ontario : Registration Number 1048826.

Under the Plan, contributions are made by eligible salaried TUFA members upon commencement ofemployment at Trent University. Limited-term employees shall be eligible to become a member when theirlimited term and pervious limited terms exceed two years. Part-time employees shall become membersafter three months of service.

The Pension Benefits Act of Ontario requires that Trent University, as the Plan sponsor, must fund thebenefits determined under the Plan. The determination of the value of these benefits is made on the basisof a periodic actuarial valuation.

A pension is available based on years of pensionable service and final average earnings. An earlyretirement pension is available from age 55, in which case reduced pension benefits are payable.Retirement from the Plan may be postponed until December 1 of the year in which the member's 71stbirthday occurs.

Death benefits are payable on the death of a contributor before retirement, and may be available on thedeath of a pensioner depending on the pension option chosen by the member prior to retirement.

Upon application and subject to Provincial legislation and lock-in provisions, withdrawal refunds andtransfers, with interest on contributions, are payable when a contributor ceases to be employed by TrentUniversity. Alternatively, a fully vested deferred pension may be elected.

The Contributory Pension Plan for TUFA Employees of Trent University is a Registered Pension Trust asdefined in the Income Tax Act and is not subject to income taxes.



8


2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of presentation

(b) Investments

(c) Contributions

(d) Benefits paid and members' withdrawals

(e) Fair value of other financial assets and liabilities

Contributions for current service are recorded in the year in which the related payroll costs are incurred.Contributions for past service are recorded in the year received.

Benefits include payments to retired members made during the year and accrual, if any, for unpaid butearned benefits as at year end. Members' withdrawals are recorded in the period in which the memberhas opted for payment.

The carrying values of all other financial assets and liabilities approximate their fair market values due tothe short term nature of these amounts.

Investments are stated at fair value. In determining fair values, adjustments have not been made fortransaction costs as they are not considered to be significant. Realized investment gains net of realizedinvestment losses are recorded as revenue in the year the security is sold. The change in the differencebetween the fair value and cost of investments at the beginning and end of each year is reflected in theStatement of Changes in Net Assets Available for Benefits as the current year change in fair value ofinvestments.

These financial statements are prepared in accordance with Canadian accounting standards for pensionplans. The financial statements present the aggregate financial position of the Plan as a separatefinancial reporting entity, independent of the employer and Plan members. They are prepared to assistPlan members and others in reviewing the activities of the Plan for the period but they do not portray thefunding requirements of the Plan or the benefit security of individual Plan members.

The fair value of pooled funds is based on their year-end net asset value, which represents the marketvalue of the underlying financial instruments. Pooled funds also include non-Canadian funds.

These financial statements are presented in Canadian dollars.

In selecting or changing accounting policies that do not relate to its investment portfolio or pensionobligations, the Plan has chosen to comply on a consistent basis with Canadian accounting standards forprivate enterprises in Part II of the CPA Canada Handbook - Accounting.



9


2. SIGNIFICANT ACCOUNTING POLICIES (continued)

(f) Fair value measurement

Level 1:

Level 2:

Level 3:

(g) Investment income

(h) Translation of foreign currencies

(i) Use of estimates

(j) Pension obligation

Transactions in foreign currencies are recorded at the rates of exchange in effect on transaction dates.Investments denominated in foreign currencies and held at year-end are translated at exchange rates ineffect at June 30. The resulting gains and losses have been included in the current year change in marketvalue of investments.

The preparation of financial statements in accordance with Canadian accounting standards for pensionplans requires management to make certain estimates and assumptions that affect the amounts reportedin the financial statements. Significant management estimates include the actuarial assumptionsunderlying the pension obligation calculation. Actual results could differ from those estimates.

The pension obligation is determined based on actuarial valuations prepared by an independent firm ofactuaries using the projected benefit method pro-rated on service and management's long-term bestestimate assumptions of future experience. The year-end value of the pension obligation is based on themost recent going-concern actuarial valuation extrapolated to the reporting date using management's bestestimate assumptions (note 7).

Fair value is based on unadjusted quoted prices in active markets for identical unrestrictedassets or liabilities.

Fair value is based on inputs other than quoted prices included in Level 1 that are observablefor the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Fair value is the amount for which an asset could be exchanged, or a liability settled, betweenknowledgeable, wiling parties in an arm's length transaction on the measurement date.

The Plan has categorized its assets and liabilities that are carried at fair value on a recurring basis, basedon significance of the inputs to the valuation techniques used to measure fair value, into a fair valuehierarchy. Financial assets and liabilities measured at fair value are categorized as follows:

Fair value is based on valuation techniques that require one or more significant unobservableinputs or the use of broker quotes. These unobservable inputs reflect the Plan's assumptionsabout the market participants in pricing assets or liabilities.

Investment income, which is reported on an accrual basis, includes interest income, dividends anddistributions from pooled fund investments. Distributions from pooled fund investments include the Plan'sproportionate share of interest and dividends.



10


3. INVESTMENT IN MASTER TRUST FUND

The assets of the Master Trust are comprised as follows:

Cost Market Cost Market

Cash, notes and treasury bills 12,967,907$ 12,737,642$ 12,008,766$ 11,423,817$ Canadian fixed income funds 128,216,926 130,326,592 125,726,863 119,394,150 Canadian equity funds 85,550,002 107,532,576 78,262,577 105,354,289 International equity funds 82,594,543 107,237,296 76,210,200 100,843,739

309,329,378$ 357,834,106$ 292,208,406$ 337,015,995$

The allocation of the investment in the Master Trust Fund to the respective Plans is as follows:

Units Cost Market

TUFA Employees 1,061,134.63 187,756,126$ 217,197,429$

OPSEU & Exempt Employees 687,091.23 121,573,252 140,636,677

1,748,225.87 309,329,378$ 357,834,106$

Units Cost Market

TUFA Employees 1,060,598.04 178,026,316$ 205,325,086$


1,740,841.86 292,208,406$ 337,015,995$

2019

2018

2019 2018

The Plan maintains an investment in a Master Trust Fund (the Fund). CIBC Mellon serves as Trustee of theFund. The Trustee maintains the equitable share of the Plan's participation in the Master Trust Fund. ThePlan acquires or sells units of the Master Trust Fund based on unit values established on a fair value basis atthe end of each month. Income is allocated monthly and expenses are allocated on the date the disbursementis recorded based on the number of units held in the Master Trust Fund.



11


4. FAIR VALUE DISCLOSURE

Level 1 Level 2 Level 3 Total

Cash, notes and treasury bills 7,731,468$ -$ -$ 7,731,468$ Canadian fixed income funds - 79,105,374 - 79,105,374 Canadian equity funds - 65,269,907 - 65,269,907 International equity funds - 65,090,680 - 65,090,680

7,731,468$ 209,465,961$ -$ 217,197,429$



6,959,896$ 198,365,190$ -$ 205,325,086$

5. RISK MANAGEMENT

The Plan invests in assets that expose it to a range of investment risks to earn a higher rate of return thanwould be achieved without incurring investment risk. Investment risk and return objectives are established todetermine an appropriate asset mix policy, strategic ranges for asset classes, and diversification policies.Relevant factors include the investment time horizon, expected return and volatility of various asset classes,the regulatory environment, liquidity needs, and other Plan specific factors.

Financial instruments recorded at fair value on the Statement of Financial Position are classified using a fairvalue hierarchy that relates the significance of the inputs used in making the measurements. See note 2(f) fora description of the Plan's policies regarding the hierarchy.

The following fair value hierarchy table presents information about the Plan's investments measured at fairvalue as at June 30, 2019 and 2018.

Investments at Fair Value as at June 30, 2019


The Board of Governors has approved a Statement of Investment Policies and Procedures (SIP&P) thatprovides a framework of guidelines and procedures for managing the Plan's assets. The SIP&P is prepared inaccordance with applicable legislation and is reviewed annually by the Board of Governors. The SIP&P waslast amended on December 1, 2017. Compliance with the SIP&P is monitored on a quarterly basis.



12


5. RISK MANAGEMENT (continued)

(a) Market risk

(i) Currency risk

Foreign Currency Hedged Net Exposure Amounts Exposure

United States 32,595,141$ 16,325,470$ 16,269,672$ Other 32,495,538 - 32,495,538

65,090,679$ 16,325,470$ 48,765,209$



61,438,477$ 15,529,586$ 45,908,891$

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate. Marketrisk comprises three types of risk: currency risk, interest rate risk and price risk. The Plan's exposure tomarket risk arises from its investment in different types of assets. The vast majority of the Plan'sinvestments expose it to some form of market risk however, the degree of risk varies considerably amongdifferent investments. One of the key ways that the Plan manages market risk is through appropriatediversification.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause of changes in foreign exchange rates. The Plan is exposed to currency risk through itsinvestment in financial instruments denominated in currencies other than the Canadian dollar.Fluctuations in the currency value compared to the Canadian dollar impact on the increase ordecrease in the investment fair value or cash flows. Currency risk is managed through diversificationamong currencies, SIP&P guidelines that limit foreign currency denominated securities, and use ofcurrency hedging. Currency hedging reduces risk by reducing the volatility from the Plan's holdings offoreign currency denominated investments through use of currency future and forward contracts.

The Plan's exposure to foreign currencies, net of currency hedging strategies, at fair value is shownbelow:

As at June 30, 2019

As at June 30, 2018

As at June 30, 2019, if the Canadian dollar had strengthened or weakened by 10% in relation to allforeign currencies, with all other variables held constant, the Plan's net assets available for benefitswould have increased or decreased respectively, by approximately $6.5 million (2018 - $6.1 million).



13



(ii) Interest rate risk

(iii) Price risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Pension liabilities also contain a significant componentof interest rate risk. The Plan's interest rate risk exposure arises due to any mismatches between theinterest rate sensitivity of the assets and the liabilities. The Plan's fixed income investments are usedto partially hedge the Plan's interest rate risk.

The value of the Plan's assets is affected by short-term changes in nominal and real interest rates.As at June 30, 2019, had prevailing interest rates increased or decreased by 1%, assuming a parallelshift in the yield curve, with all other variables held constant, the Plan's investments in fixed incomesecurities would have decreased or increased by approximately $6.3 million (2018 - $5.5 million),approximately 2.9% (2018 - 2.7%) of total net assets available for benefits.

With respect to pension obligations, as at June 30, 2019 and holding inflation and salary escalationassumptions constant, a 1% reduction in the assumed long-term rate of return would result in anincrease in pension obligations, measured on a going concern basis, of approximately 14.0% (2018 -14.4%). A 1% increase in the assumed long-term rate of return would result in a decrease in pensionobligations, measured on a going concern basis, of approximately 10.2% (2018 - 12.7%).

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause of changes in market prices (other than those arising from interest rate risk or currency risk),whether those changes are caused by factors specific to the individual financial instrument or itsissuer, or factors affecting all similar financial instruments traded in the market. The Plan's exposureto price risk results from its holdings of domestic and foreign pooled funds.

The most significant exposure to market price risk for the Plan arises from investments in equitysecurities. If equity prices on the respective stock exchanges for these securities had increased ordecreased by 10% as at June 30, 2019, with all other variables held constant, the net assets availablefor benefits of the Plan would have increased or decreased, respectively, by approximately $13.0million (2018 - $12.6 million), or approximately 6.0% (2018 - 6.1%) of net assets available for benefits.

As all of the Plan's investments are carried at fair value with fair value changes recognized in theStatement of Changes in Net Assets Available for Benefits, all changes in market conditions willdirectly result in an increase (decrease) in net assets available for benefits.



14



The following table provides information on the Plan's price risk:

TD Emerald TD Emerald TD Emerald TD EmeraldCanadian Equity Pooled US Hedged US Equity International Index

Index Fund Equity Fund Pooled Fund Equity Fund% % % %

Communication services 5.62 10.19 10.19 5.39 Consumer discretionary 4.18 10.20 10.20 11.12 Consumer staples 3.92 7.27 7.27 11.68 Energy 17.10 5.04 5.04 5.49 Financials 32.01 13.08 13.09 18.89 Health care 2.01 14.19 14.21 11.16 Industrials 11.35 9.38 9.36 14.82 Information technology 5.09 21.49 21.49 6.71 Materials 10.97 2.80 2.81 7.38 Utilities 4.34 3.31 3.31 3.73 Real Estate 3.41 3.05 3.03 3.63

100.00 100.00 100.00 100.00



Consumer discretionary 5.51 12.92 12.92 12.36 Consumer staples 3.46 6.87 6.87 11.33 Energy 20.20 6.34 6.34 6.07 Financial 33.24 13.85 13.85 19.81 Health care 1.29 14.08 14.07 10.65 Industrials 10.01 9.56 9.58 14.30 Infrastructure 3.95 25.98 25.95 6.83 Materials 11.69 2.60 2.61 8.17 Telecommunications 4.35 2.00 1.99 3.63 Utilities 3.50 2.95 2.95 3.32 Real Estate 2.80 2.85 2.87 3.53

100.00 100.00 100.00 100.00

2019

2018



15



(b) Credit risk

2019 2018% %

Credit ratingAAA 38.42 39.35 AA 36.71 32.38 A 13.27 17.59 B-BBB 11.60 10.68

100.00 100.00

(c) Liquidity risk

As at June 30, 2019, accrued fees, expenses and benefit payments payable are due within one year.

Credit risk is managed through limits on minimum credit rating requirements and limits on investing in thesecurities of a single issuer and its related companies. All credit quality ratings must be rated by arecognized rating agency. The maximum credit exposure of the Plan is represented by the fair value ofthe investments as presented in the Statement of Financial Position.

The following table provides the breakdown of the Plan's fixed income portfolio by credit ratings fromvarious rating agencies:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated withfinancial liabilities. The Plan is exposed to liquidity risk through its accrued pension benefits andinvestment commitments. The Plan manages short-term liquidity through forecasting its requirements tomaintain its financial obligations as they become due. Liquidity risk is managed by limits on investments inilliquid asset classes and limits on holdings of certain types of investments.

The Plan's objective is to have sufficient liquidity to meet its liabilities when due. The Plan monitors itscash balances and cash flows generated from operations to meet its requirements. The Plan's liabilitiesreflected in these financial statements have contractual short term maturities and are subject to normaltrade terms.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other partyby failing to discharge an obligation. The Plan's main exposure to credit risk comes from its investmentsin debt instruments.



16


6. STATUTORY INFORMATION

Cost Market Cost MarketCash and cash equivalents

TD Emerald Canadian ShortTerm Investment Fund 12,967,907$ 12,737,642$ 12,008,766$ 11,423,817$

Fixed income fundsTD Emerald Canadian Bond

Pooled Fund 128,216,926 130,326,592 125,726,863 119,394,150

Equity fundsTD Emerald Canadian Equity

Index Fund 85,550,002 107,532,576 78,262,577 105,354,289 TD Emerald Hedged US Equity

Pooled Fund 24,440,699 26,896,312 22,907,893 25,489,914 TD Emerald International Equity Index Fund 39,766,710 53,536,599 35,631,745 49,271,906 TD Emerald Pooled US Equity Fund 18,387,134 26,804,385 17,670,562 26,081,919

Individual investments less than1% of the cost or market value of the fund - - - -

309,329,378$ 357,834,106$ 292,208,406$ 337,015,995$

7. PENSION OBLIGATION

As required by the Pension Benefits Act of Ontario, individual investments which exceed 1% of the cost ofmarket value of the Master Trust Fund's net assets are summarized as follows:

2019 2018

The pension obligation is actuarially determined by the Plan's actuary, AON, using the projected benefitmethod prorated on services, and reflect Plan management's best estimates regarding assumptions about anumber of future events, including salary escalation, retirement ages or employees and other actuarial factors.

The actuarial present value of benefits as at June 30, 2019 is based on an actuarial projection of a valuationas at July 1, 2018. The assumptions used in determining the actuarial value of accrued pension benefits weredeveloped by reference to expected long-term market conditions. Significant long-term actuarial assumptionsused in the most recent valuation are a discount rate of 5.60% (2018 - 5.25%), an inflation rate of 2.00% (2018- 2.00%), and a salary escalation rate of 3.75% (2018 - 3.75%).



17


8. SOLVENCY DEFICIT OBLIGATIONS

9. CAPITAL DISCLOSURES

An actuarial valuation for funding purposes is required to be filed with the pension regulator at least every threeyears. The most recent actuarial valuation performed by the actuary and funded position is disclosed in note8.

The most recent actuarial valuation filed with the Financial Services Commission of Ontario dated June 30,2016 resulted in a solvency deficit of $107,185,605 and a going concern unfunded liability of $37,275,507.Trent University is participating in Stage Two of solvency funding relief measures of the amended OntarioRegulation 178/11 under the Pension Benefits Act . Under Stage Two relief, the University elected to defernew going concern and solvency special payments established as at June 30, 2016 by twelve months and todetermine the special payments using a seven-year amortization option.

In accordance with the amended Regulation, the University will fund 25% of the solvency deficit over sevenyears, commencing June 30, 2017 and also make interest only contributions of 100% of the balance of thedeficit for the same period.

Beginning July 1, 2017, Trent University, as the Plan sponsor, was required to make payments in respect ofthe going concern unfunded liability at a rate of $4,586,040 per year for eight years and $2,457,204 for yearsnine to twelve. In addition, special payments in respect of the solvency deficit began July 1, 2017 for sevenyears at a rate of $1,339,135 per year.

The Plan's objective in managing capital is to preserve the net assets available for pension benefits for itsmembership. The Board of Governors is responsible for the operation and administration of the Plan.Managing capital takes into account capital requirements provided in the terms of the Plan and applicablelegislation with the Pension Benefits Act of Ontario and the Income Tax Act .

The Plan's capital is comprised of the net assets available for benefits. The Plan's risks are defined in note 5as are the Board of Governors risk management strategies. A trust company holds the assets under a TrustAgreement and provides daily administration of the Plan. Professional investment managers administer theportfolio.

An independent actuarial valuation for funding purposes is used to measure the financial well-being of thePlan. The objective of monitoring the Plan's capital is to ensure the Plan is fully funded to pay the Planbenefits over the long term.

The actuary tests the Plan's ability to meet its obligations to all Plan members and beneficiaries. Using anassumed rate of return, the actuary projects the Plan's benefits on a going-concern basis to estimate thecurrent value of the lability, which it compares to the sum of the Plan assets and the present value of all futurecontributions. The result of the comparison is either a surplus or a deficit. As part of the funding valuation, theactuary also performs a measurement of the Plan's assets and liabilities on a solvency basis, which simulatesthe wind-up of the Plan.



18


9 CAPITAL DISCLOSURES (continued)

At June 30, investments for each asset class were as follows:

Minimum % Maximum % Benchmark % Actual %

Canadian equities 20.0 40.0 30.0 30.0 United States equities 12.5 17.5 15.0 15.0 Non-North American equities 12.5 17.5 15.0 15.0 Total equities 45.0 75.0 60.0 60.0

Bonds 26.5 46.5 36.5 36.4 Cash - 10.0 3.5 3.6 Total fixed income 26.5 56.5 40.0 40.0

Total 100.0 100.0




Total 100.0 100.0

10. SUBSEQUENT EVENT

11. RELATED PARTY TRANSACTIONS

2018

The Sponsor, Trent University, provides certain administrative services to the Plan. The cost to the Plan for these services included in the Statement of Changes in Net Assets Available for Benefits for the year ended June 30, 2019 was $82,522 (2018 - $79,618) being the exchange amount agreed to by the parties.

On October 4, 2019, the Board of Governors approved an amended SIP&P, dated September 1, 2019. There were no material changes that would impact the Plan's financial position.

The SIP&P articulates the Plan's overall investment return objective which is a minimum of 3.75% net ofexpenses measured over rolling four-year periods. The performance of investment managers is assessedregularly compared to the relevant benchmarks.

2019



PageNumber







Table of Contents


THE CONTRIBUTORY PENSION PLANFOR EMPLOYEES REPRESENTED BY OPSEU LOCAL 365

TRENT UNIVERSITY(Registration Number 0310409)

June 30, 2019

AND EXEMPT ADMINISTRATIVE STAFF OF


APPENDIX BITEM 8 - AUDITED PENSION FINANCIAL STATEMENTS




We have audited the financial statements of the Contributory Pension Plan for

Employees Represented by OPSEU Local 365 and Exempt Administrative Staff of Trent University (the “Entity”), which comprise:

• the statement of financial position as at June 30, 2019

• the statement of changes in net assets available for benefits for the year then

ended

• the statement of changes in pension obligation for the year then ended

• and notes to the financial statements, including a summary of significant

accounting policies


In our opinion, the accompanying financial statements, present fairly, in all material respects, the financial position of the Entity as at June 30, 2019, and the

changes in its net assets available for benefits and the changes in pension obligation for the year then ended in accordance with Canadian Accounting standards for pension plans.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted

auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial

Statements” section of our auditors’ report.



We believe that the audit evidence we have obtained is sufficient and appropriate

to provide a basis for our opinion.


Management is responsible for the preparation and fair presentation of the

financial statements in accordance with Canadian Accounting standards for pension plans, and for such internal control as management determines is

necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.



In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable,

matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Entity’s financial reporting process.


Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud

or error, and to issue an auditors’ report that includes our opinion.



Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional

skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit

procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is

higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control.


design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by

management.













Kingston, Canada



4

THE CONTRIBUTORY PENSION PLAN FOR EMPLOYEES RESPRESENTED BY OPSEU LOCAL 365 ANDEXEMPT ADMINISTRATIVE STAFF OF TRENT UNIVERSITYStatement of Financial PositionJune 30, 2019

2019 2018

ASSETSContributions receivable

Members 223,603$ 205,203$ University 544,146 336,109

Investment in Master Trust Fund (note 3) 140,636,677 131,690,909

141,404,426 132,232,221

LIABILITIESAccrued fees, expenses and benefit payments 171,330 836,344

NET ASSETS AVAILABLE FOR BENEFITS 141,233,096 131,395,877



Solvency deficit obligations (note 8)




Governor

Governor



5

THE CONTRIBUTORY PENSION PLAN FOR EMPLOYEES RESPRESENTED BY OPSEU LOCAL 365 ANDEXEMPT ADMINISTRATIVE STAFF OF TRENT UNIVERSITYStatement of Changes in Net Assets Available for BenefitsYear Ended June 30, 2019

2019 2018

INCREASE IN ASSETSContributions

Employer current service contributions 3,225,733$ 3,055,389$ Members' current service contributions 2,733,753 2,589,061 Members' past service contributions 67,817 106,735 Employer special payments (note 8) 3,366,495 1,126,308

9,393,798 6,877,493

Investment incomeInterest 1,561,503 1,463,506 Dividends 2,200,252 2,148,036

3,761,755 3,611,542 Net realized investment gains 2,343,293 2,960,308 Current year change in fair value of investments 1,554,606 1,986,550

7,659,654 8,558,400

17,053,452 15,435,893


Retirement benefits paid 6,517,291 6,242,036 Death benefits, withdrawal refunds and transfers 427,170 1,612,238

Administrative expensesInvestment management fees 52,031 55,620 Actuarial and pension administration fees 116,124 174,867 Trustee fees 19,213 46,501 Audit fees 6,215 7,795 Consulting fees 18,058 16,641 Administration and registration fees (note 11) 70,628 68,686 HST rebate (10,497) (10,075)

7,216,233 8,214,309

NET INCREASE IN ASSETS AVAILABLE FOR BENEFITS 9,837,219 7,221,584

NET ASSETS AVAILABLE FOR BENEFITS - beginning of year 131,395,877 124,174,293

NET ASSETS AVAILABLE FOR BENEFITS - end of year 141,233,096$ 131,395,877$




6

THE CONTRIBUTORY PENSION PLAN FOR EMPLOYEES RESPRESENTED BY OPSEU LOCAL 365 ANDEXEMPT ADMINISTRATIVE STAFF OF TRENT UNIVERSITYStatement of Changes in Pension ObligationYear Ended June 30, 2019

2019 2018



Net experience loss (gain) (922,681) 236,193

Indexation loss - 490,636 Benefits accrued 5,353,919 5,237,766


Change in actuarial assumptions 5,307,637 6,201,320







7

THE CONTRIBUTORY PENSION PLAN FOR EMPLOYEES RESPRESENTED BY OPSEU LOCAL 365 ANDEXEMPT ADMINISTRATIVE STAFF OF TRENT UNIVERSITYNotes to the Financial StatementsJune 30, 2019


(a) General

(b) Funding

(c) Retirement benefits

(d) Death benefits

(e) Withdrawal refunds and transfers

(f) Income taxes

The following description of the Contributory Pension Plan for Employees Represented by OPSEU Local 365and Exempt Administrative Staff of Trent University (the Plan) is provided for general information purposesonly. For more complete information reference should be made to the Plan Agreement.

The Plan is a mandatory contributory defined benefit pension plan for eligible employees represented byOntario Public Service Employees Union (OPSEU) and exempt administrative staff of Trent University andis registered under the Pension Benefits Act of Ontario : Registration Number 0310409.

Under the Plan, contributions are made by eligible employees and staff upon commencement ofemployment, and by eligible hourly paid employees after three months service at Trent University. Limitedterm employees shall be eligible to become members at the time it is known that the duration of theiremployment will exceed two years.

The Pension Benefits Act of Ontario requires that Trent University, as the Plan sponsor, must fund thebenefits determined under the Plan. The determination of the value of these benefits is made on the basisof a periodic actuarial valuation.

A pension is available based on years of pensionable service and final average earnings. An earlyretirement pension is available from age 55, in which case reduced pension benefits are payable.Retirement from the Plan may be postponed until December 1 of the year in which the member's 71stbirthday occurs.

Death benefits are payable on the death of a contributor before retirement, and may be available on thedeath of a pensioner depending on the pension option chosen by the member prior to retirement.

Upon application and subject to Provincial legislation and lock-in provisions, withdrawal refunds andtransfers, with interest on contributions, are payable when a contributor ceases to be employed by TrentUniversity. Alternatively, a fully vested deferred pension may be elected.

The Contributory Pension Plan for Employees Represented by OPSEU Local 365 and ExemptAdministrative Staff of Trent University is a Registered Pension Trust as defined in the Income Tax Actand is not subject to income taxes.



8




(b) Investments

(c) Contributions






Investments are stated at fair value. In determining fair values, adjustments have not been made fortransaction costs as they are not considered to be significant. Realized investment gains net of realizedinvestment losses are recorded as revenue in the year the security is sold. The change in the differencebetween the fair value and cost of investments at the beginning and end of each year is reflected in theStatement of Changes in Net Assets Available for Benefits as the current year change in fair value ofinvestments.







9




Level 1:

Level 2:

Level 3:



(i) Use of estimates




Fair value is the amount for which an asset could be exchanged, or a liability settled, betweenknowledgeable, willing parties in an arm's length transaction on the measurement date.




Transactions in foreign currencies are recorded at the rates of exchange in effect on transaction dates.Investments denominated in foreign currencies and held at year-end are translated at exchange rates ineffect at June 30. The resulting gains and losses have been included in the current year change in marketvalue of investments.


The pension obligation is determined based on actuarial valuations prepared by an independent firm ofactuaries using the projected benefit method pro-rated on service and management's long-term bestestimate assumptions of future experience. The year-end value of pension obligations is based on themost recent going-concern actuarial valuation extrapolated to the reporting date using management's bestestimate assumptions (note 7).



10


3. INVESTMENT IN MASTER TRUST FUND

The assets of the Master Trust are comprised as follows:


Cash, notes and treasury bills 12,967,907$ 12,737,642$ 12,008,766$ 11,423,817$ Canadian fixed income funds 128,216,926 130,326,592 125,726,863 119,394,150 Canadian equity funds 85,550,002 107,532,576 78,262,577 105,354,289 International equity funds 82,594,543 107,237,296 76,210,200 100,843,739

309,329,378$ 357,834,106$ 292,208,406$ 337,015,995$

The allocation of the investment in the Master Trust Fund to the respective Plans is as follows:

Units Cost Market

TUFA Employees 1,061,134.63 187,756,126$ 217,197,429$


1,748,225.86 309,329,378$ 357,834,106$

Units Cost Market

TUFA Employees 1,060,598.04 178,026,316$ 205,325,086$


1,740,841.86 292,208,406$ 337,015,995$

The Plan maintains an investment in a Master Trust Fund (the Fund). CIBC Mellon serves as Trustee of theFund. The Trustee maintains the equitable share of the Plan's participation in the Master Trust Fund. ThePlan acquires or sells units of the Master Trust Fund based on unit values established on a fair value basis atthe end of each month. Income is allocated monthly and expenses are allocated on the date the disbursementis recorded based on the number of units held in the Master Trust Fund.

2019

2018

2019 2018



11





5,006,174$ 135,630,504$ -$ 140,636,677$



4,463,921$ 127,226,988$ -$ 131,690,909$

5. RISK MANAGEMENT

The Plan invests in assets that expose it to a range of investment risks to earn a higher rate of return thanwould be achieved without incurring investment risk. Investment risk and return objectives are established todetermine an appropriate asset mix policy, strategic ranges for asset classes, and diversification policies.Relevant factors include the investment time horizon, expected return and volatility of various asset classes,the regulatory environment, liquidity needs, and other Plan specific factors.

Financial instruments recorded at fair value on the Statement of Financial Position are classified using a fairvalue hierarchy that relates the significance of the inputs used in making the measurements. See note 2(f) fora description of the Plan's policies regarding the hierarchy.




The Board of Governors has approved a Statement of Investment Policies and Procedures (SIP&P) thatprovides a framework of guidelines and procedures for managing the Plan's assets. The SIP&P is prepared inaccordance with applicable legislation and is reviewed annually by the Board of Governors. The SIP&P waslast amended on December 1, 2017. Compliance with the SIP&P is monitored on a quarterly basis.



12



(a) Market risk

(i) Currency risk



42,146,617$ 10,570,842$ 31,575,774$



39,405,262$ 9,960,328$ 29,444,934$

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate. Marketrisk comprises three types of risk: currency risk, interest rate risk and price risk. The Plan's exposure tomarket risk arises from its investment in different types of assets. The vast majority of the Plan'sinvestment expose it to some form of market risk, however, the degree of risk varies considerably amongdifferent investments. One of the key ways that the Plan manages market risk is through appropriatediversification.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause of changes in foreign exchange rates. The Plan is exposed to currency risk through itsinvestment in financial instruments denominated in currencies other than the Canadian dollar.Fluctuations in the currency value compared to the Canadian dollar impact on the increase ordecrease in the investment fair value or cash flows. Currency risk is managed through diversificationamong currencies, SIP&P guidelines that limit foreign currency denominated securities, and use ofcurrency hedging. Currency hedging reduces risk by reducing the volatility from the Plan's holdings offoreign currency denominated investments through use of currency future and forward contracts.

The Plan's exposure to foreign currencies, net of currency hedging strategies, at fair value is shownbelow:

As at June 30, 2019

As at June 30, 2018

As at June 30, 2019, if the Canadian dollar had strengthened or weakened by 10% in relation to allforeign currencies, with all other variables held constant, the Plan's net assets available for benefitswould have increased or decreased respectively, by approximately $4.2 million (2018 - $3.9 million).



13



(ii) Interest rate risk

(iii) Price risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Pension liabilities also contain a significant componentof interest rate risk. The Plan's interest rate risk exposure arises due to any mismatches between theinterest rate sensitivity of the assets and the liabilities. The Plan's fixed income investments are usedto partially hedge the Plan's interest rate risk.

With respect to pension obligations, as at June 30, 2019 and holding inflation and salary escalationassumptions constant, a 1% reduction in the assumed long-term rate of return would result in anincrease in pension obligations, measured on a going concern basis, of approximately 14.6% (2018 -14.9%). A 1% increase in the assumed long-term rate of return would result in a decrease in pensionobligations, measured on a going concern basis, of approximately 10.6% (2018 - 11.9%).

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause of changes in market prices (other than those arising from interest rate risk or currency risk),whether those changes are caused by factors specific to the individual financial instrument or itsissuer, or factors affecting all similar financial instruments traded in the market. The Plan's exposureto price risk results from its holdings of domestic and foreign pooled funds.

As all of the Plan's investments are carried at fair value with fair value changes recognized in theStatement of Changes in Net Assets Available for Benefits, all changes in market conditions willdirectly result in an increase (decrease) in net assets available for benefits.

The most significant exposure to market price risk for the Plan arises from investments in equitysecurities. If equity prices on the respective stock exchanges for these securities had increased ordecreased by 10% as at June 30, 2019, with all other variables held constant, the net assets availablefor benefits of the Plan would have increased or decreased, respectively, by approximately $8.4million (2018 - $8.1 million), or approximately 6.0% (2018 - 6.1%) of net assets available for benefits.

The value of the Plan's assets is affected by short-term changes in nominal and real interest rates.As at June 30, 2019, had prevailing interest rates increased or decreased by 1%, assuming a parallelshift in the yield curve, with all other variables held constant, the Plan's investments in fixed incomesecurities would have decreased or increased by approximately $4.1 million (2018 - $3.5 million),approximately 2.9% (2018 - 2.7%) of total net assets available for benefits.



14



The following table provides information on the Plan's price risk:



Communication services 5.62 10.19 10.19 5.39 Consumer discretionary 4.18 10.20 10.20 11.12 Consumer staples 3.92 7.27 7.27 11.68 Energy 17.10 5.04 5.04 5.49 Financials 32.01 13.08 13.09 18.89 Health care 2.01 14.19 14.21 11.16 Industrials 11.35 9.38 9.36 14.82 Information technology 5.09 21.49 21.49 6.71 Materials 10.97 2.80 2.81 7.38 Utilities 4.34 3.31 3.31 3.73 Real Estate 3.41 3.05 3.03 3.63

100.00 100.00 100.00 100.00



Consumer discretionary 5.51 12.92 12.92 12.36 Consumer staples 3.46 6.87 6.87 11.33 Energy 20.20 6.34 6.34 6.07 Financial 33.24 13.85 13.85 19.81 Health care 1.29 14.08 14.07 10.65 Industrials 10.01 9.56 9.58 14.30 Infrastructure 3.95 25.98 25.95 6.83 Materials 11.69 2.60 2.61 8.17 Telecommunications 4.35 2.00 1.99 3.63 Utilities 3.50 2.95 2.95 3.32 Real Estate 2.80 2.85 2.87 3.53

100.00 100.00 100.00 100.00

2019

2018



15



(b) Credit risk

2019 2018% %

Credit ratingAAA 38.42 39.35 AA 36.71 32.38 A 13.27 17.59 B-BBB 11.60 10.68

100.00 100.00

(c) Liquidity risk

As at June 30, 2019, accrued fees, expenses and benefit payments payable are due within one year.

The following table provides the breakdown of the Plan's fixed income portfolio by credit ratings fromvarious rating agencies:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated withfinancial liabilities. The Plan is exposed to liquidity risk through its accrued pension benefits andinvestment commitments. The Plan manages short-term liquidity through forecasting its requirements tomaintain its financial obligations as they become due. Liquidity risk is managed by limits on investments inilliquid asset classes and limits on holdings of certain types of investments.

The Plan's objective is to have sufficient liquidity to meet its liabilities when due. The Plan monitors itscash balances and cash flows generated from operations to meet its requirements. The Plan's liabilitiesreflected in these financial statements have contractual short term maturities and are subject to normaltrade terms.

Credit risk is managed through limits on minimum credit rating requirements and limits on investing in thesecurities of a single issuer and its related companies. All credit quality ratings must be rated by arecognized rating agency. The maximum credit exposure of the Plan is represented by the fair value ofthe investments as presented in the Statement of Financial Position.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other partyby failing to discharge an obligation. The Plan's main exposure to credit risk comes from its investmentsin debt instruments.



16


6. STATUTORY INFORMATION

Cost Market Cost MarketCash and cash equivalents

TD Emerald Canadian ShortTerm Investment Fund 12,967,907$ 12,737,642$ 12,008,766$ 11,423,817$

Fixed income fundsTD Emerald Canadian Bond

Pooled Fund 128,216,926 130,326,592 125,726,863 119,394,150

Equity fundsTD Emerald Canadian Equity

Index Fund 85,550,002 107,532,576 78,262,577 105,354,289 TD Emerald Hedged US Equity

Pooled Fund 24,440,699 26,896,312 22,907,893 25,489,914 TD Emerald International Equity Index Fund 39,766,710 53,536,599 35,631,745 49,271,906 TD Emerald Pooled US Equity Fund 18,387,134 26,804,385 17,670,562 26,081,919

Individual investments less than1% of the cost or market value of the fund - - - -

309,329,378$ 357,834,106$ 292,208,406$ 337,015,995$


The pension obligation is actuarially determined by the Plan's actuary, AON, using the projected benefitmethod prorated on services, and reflects Plan management's best estimates regarding assumptions about anumber of future events, including salary escalation, retirement ages or employees and other actuarial factors.

The actuarial present value of benefits as at June 30, 2019 is based on an actuarial projection of a valuationas at July 1, 2018. The assumptions used in determining the actuarial value of accrued pension benefits weredeveloped by reference to expected long-term market conditions. Significant long-term actuarial assumptionsused in the most recent valuation are a discount rate of 5.60% (2018 - 5.25%), an inflation rate of 2.00% (2018- 2.00%), and a salary escalation rate of 3.75% (2018 - 3.75%).

As required by the Pension Benefits Act of Ontario, individual investments which exceed 1% of the cost ofmarket value of the Master Trust Fund's net assets are summarized as follows:

2019 2018



17


8. SOLVENCY DEFICIT OBLIGATIONS

9. CAPITAL DISCLOSURES

An actuarial valuation for funding purposes is required to be filed with the pension regulator at least every threeyears. The most recent actuarial valuation performed by the actuary and funded position is disclosed in note8.

The most recent actuarial valuation filed with the Financial Services Commission of Ontario dated July 1, 2017resulted in a solvency deficit of $58,038,443 and a going concern unfunded liability of $15,461,739. TrentUniversity is participating in Stage Two of solvency funding relief measures of the amended Ontario Regulation178/11 under the Pension Benefits Act . Under Stage Two relief, the University elected to defer new goingconcern and solvency special payments established as at July 1, 2017 by twelve months and to determine thespecial payments using a seven-year amortization option.

In accordance with the amended Regulation, the University will fund 25% of the solvency deficit over sevenyears, which commenced July 1, 2018 and will also make interest only contributions of 100% of the balance ofthe deficit for the same period.

Beginning July 1, 2018, Trent University, as the Plan sponsor, was required to make payments in respect ofthe going concern unfunded liability at a rate of $1,799,042 per year for eight years, $929,628 for years nine totwelve and $874,080 for years thirteen to fifteen. In addition, special payments in respect of the solvencydeficit began on July 1, 2018 for seven years at a rate of $1,567,453 per year.

The Plan's objective in managing capital is to preserve the net assets available for pension benefits for itsmembership. The Board of Governors is responsible for the operation and administration of the Plan.Managing capital takes into account capital requirements provided in the terms of the Plan and applicablelegislation with the Pension Benefits Act of Ontario and the Income Tax Act .

The Plan's capital is comprised of the net assets available for benefits. The Plan's risks are defined in note 5as are the Board of Governors risk management strategies. A trust company holds the assets under a TrustAgreement and provides daily administration of the Plan. Professional investment managers administer theportfolio.

An independent actuarial valuation for funding purposes is used to measure the financial well-being of thePlan. The objective of monitoring the Plan's capital is to ensure the Plan is fully funded to pay the Planbenefits over the long term.

The actuary tests the Plan's ability to meet its obligations to all Plan members and beneficiaries. Using anassumed rate of return, the actuary projects the Plan's benefits on a going-concern basis to estimate thecurrent value of the liability, which it compares to the sum of the Plan assets and the present value of all futurecontributions. The result of the comparison is either a surplus or a deficit. As part of the funding valuation, theactuary also performs a measurement of the Plan's assets and liabilities on a solvency basis, which simulatesthe wind-up of the Plan.



18


9. CAPITAL DISCLOSURES (continued)

At June 30, investments for each asset class were as follows:




Total 100.0 100.0




Total 100.0 100.0

10. SUBSEQUENT EVENT

11. RELATED PARTY TRANSACTIONS

The Sponsor, Trent University, provides certain administrative services to the Plan. The cost to the Plan for these services included in the Statement of Changes in Net Assets Available for Benefits for the year ended June 30, 2019 was $64,166 (2018 - $62,644) being the exchange amount agreed to by the parties.

On October 4, 2019, the Board of Governors approved an amended SIP&P, dated September 1, 2019. There were no material changes that would impact the Plan's financial position.

2019

2018

The SIP&P articulates the Plan's overall investment return objective which is a minimum of 3.75% net ofexpenses measured over rolling four-year periods. The performance of investment managers is assessedregularly compared to the relevant benchmarks.



PageNumber







Table of Contents


THE SUPPLEMENTAL RETIREMENT ARRANGEMENTFOR MEMBERS OF THE CONTRIBUTORY PENSION PLAN

TRENT UNIVERSITY

June 30, 2019

FOR TUFA EMPLOYEES OF


APPENDIX CITEM 8 - AUDITED PENSION FINANCIAL STATEMENTS




Opinion

We have audited the financial statements of the Supplemental Retirement Arrangement for Members of the Contributory Pension Plan for TUFA Employees

of Trent University (the “Entity”), which comprise:

• the statement of financial position as at June 30, 2019;

• the statement of changes in net assets available for benefits for the year then ended;

• the statement of changes in pension obligation for the year then ended; and

• notes to the financial statements, including a summary of significant

accounting policies.


In our opinion, the accompanying financial statements, present fairly, in all

material respects, the financial position of the Entity as at June 30, 2019, and the changes in its net assets available for benefits and the changes in pension obligation for the year then ended in accordance with Canadian Accounting

standards for pension plans.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further

described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report.



We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian Accounting standards for

pension plans, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.



In preparing the financial statements, management is responsible for assessing

the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease

operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Entity’s

financial reporting process.


Our objectives are to obtain reasonable assurance about whether the financial

statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.



Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence

the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with Canadian generally accepted auditing

standards, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the financial

statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal control.


design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's

internal control.

• Evaluate the appropriateness of accounting policies used and the

reasonableness of accounting estimates and related disclosures made by management.













Ottawa, Canada



4

THE SUPPLEMENTAL RETIREMENT ARRANGEMENT FORMEMBERS OF THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYStatement of Financial PositionJune 30, 2019

2019 2018

ASSETSInvestments (note 3) -$ 655,120$

LIABILITIESAccrued fees, expenses and benefit payments - 5,721

NET ASSETS AVAILABLE FOR BENEFITS - 649,399






Governor

Governor



5

THE SUPPLEMENTAL RETIREMENT ARRANGEMENT FORMEMBERS OF THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYStatement of Changes in Net Assets Available for BenefitsYear Ended June 30, 2019

2019 2018

INCREASE IN ASSETSInvestment income 2,158$ 45,812$ Net realized investment gains (losses) (1,430) 328,507 Current year change in fair value of investments 2,115 (264,831)

2,843 109,488


Retirement benefits paid 521,194 1,493,598 Death benefits, withdrawal refunds and transfers - 169,093 Health care benefits for retirees 2,476 9,352

Distribution to Plan Administrator (note 6) 123,178 -

Administrative expensesInvestment management fees 4,093 11,372 Actuarial and pension administration fees - 7,534 Trustee fees 1,297 7,102 Audit fees - 4,682 Consulting fees 4 2,024

652,242 1,704,757

NET DECREASE IN ASSETS AVAILABLE FOR BENEFITS (649,399) (1,595,269)

NET ASSETS AVAILABLE FOR BENEFITS - beginning of year 649,399 2,244,668

NET ASSETS AVAILABLE FOR BENEFITS - end of year -$ 649,399$




6

THE SUPPLEMENTAL RETIREMENT ARRANGEMENT FORMEMBERS OF THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYStatement of Changes in Pension ObligationYear Ended June 30, 2019

2019 2018



Net experience loss 1,523,914 828,993

Indexation loss - 63,959 Benefits accrued 516,509 492,503


Change in actuarial assumptions (966,800) 2,333,331



Adjustment for Health Care Reimbursement 106,906 103,850

Adjusted balance - beginning of year 26,652,953 23,247,308





7

THE SUPPLEMENTAL RETIREMENT ARRANGEMENT FORMEMBERS OF THE CONTRIBUTORY PENSION PLAN FOR TUFA EMPLOYEES OF TRENT UNIVERSITYNotes to the Financial StatementsJune 30, 2019


(a) General

(b) Funding

(c) Supplemental retirement benefits

(d) Supplemental death benefits

(e) Supplemental termination benefits

(f) Income taxes

The following description of the Supplemental Retirement Arrangement for Members of the ContributoryPension Plan for TUFA Employees of Trent University (the Plan) is provided for general information purposesonly. For more complete information reference should be made to the Plan.

The Plan provides eligible members of The Contributory Pension Plan for TUFA Employees of TrentUniversity with additional retirement benefits to compensate for the limitations prescribed under theregulations of the Income Tax Act (Canada) on the amount of lifetime retirement benefits payable from aregistered plan.

The Plan is not a registered pension plan as defined in the Pension Benefits Act , and consequently,these financial statements are not required to be filed with a pension regulation authority.

The Pension Benefits Act of Ontario requires that Trent University, as the Plan sponsor, must fund thebenefits determined under the Plan. The determination of the value of these benefits is made on thebasis of a periodic actuarial valuation.

Supplemental retirement benefits are available based on years of pensionable service and final averageearnings. An early retirement pension is available from age 55, in which case reduced supplementedbenefits are payable. Retirement from the Plan may be postponed until December 1 of the year in whichthe member's 71st birthday occurs.

Supplemental death benefits are payable on the death of a member before retirement, and may beavailable on the death of a pensioner depending on the pension option chosen by the member prior toretirement.

Upon application and subject to lock-in provisions, termination transfers are payable when a memberceases to be employed by Trent University. Alternatively, a fully vested deferred supplemental retirementbenefit may be elected.

Canada Revenue Agency has ruled that the Supplemental Retirement Arrangement for Members of theContributory Pension Plan for TUFA Employees of Trent University is not subject to income taxes.



8




(b) Investments

(c) Contributions






Investments are stated at fair value. In determining fair values, adjustments have not been made fortransaction costs as they are not considered to be significant. Realized investment gains net of realizedinvestment losses are recorded as revenue in the year the security is sold. The change in the differencebetween the fair value and cost of investments at the beginning and end of each year is reflected in thestatement of changes in net assets available for benefits as the current year change in fair value ofinvestments.







9




Level 1:

Level 2:

Level 3:



(I) Use of estimates




Transactions in foreign currencies are recorded at the rates of exchange in effect on transaction dates.Investments denominated in foreign currencies and held at year-end are translated at exchange rates ineffect at June 30. The resulting gains and losses have been included in the current year change inmarket value of investments.


The pension obligation is determined based on actuarial valuations prepared by an independent firm ofactuaries using the projected benefit method pro-rated on service and management's long-term bestestimate assumptions of future experience. The year-end value of pension obligations is based on themost recent going-concern actuarial valuation extrapolated to the reporting date using management'sbest estimate assumptions (note 5).

Fair value is the amount for which an asset could be exchanged, or a liability settled, betweenknowledgeable, willing parties in an arm's length transaction on the measurement date.






10


3. INVESTMENTS

Investments are comprised of the following:


-$ -$ 657,235$ 655,120$

-$ -$ 657,235$ 655,120$



Cash, notes and treasury bills -$ -$ -$ -$

-$ -$ -$ -$


Cash, notes and treasury bills 655,120$ -$ -$ 655,120$

655,120$ -$ -$ 655,120$

TD Emerald Short Term Investment Fund

Financial instruments recorded at fair value on the Statement of Financial Position are classified using a fairvalue hierarchy that relates the significance of the inputs used in making the measurements. See note 2(f)for a description of the Plan's policies regarding the hierarchy.




2019 2018



11



6. LIQUIDATION OF PLAN ASSETS

7. SUBSEQUENT EVENT

In November 2018 the assets of the Plan were liquidated and in March 2019 the assets of the Plan were fullydepleted. Since liquidation, benefit payments are being administered on a pay as you go basis by TrentUniversity.

The pension obligation is actuarially determined by the Plan's actuary, AON, using the projected benefitmethod prorated on services, and reflects Plan management's best estimates regarding assumptions about anumber of future events, including salary escalation, retirement ages or employees and other actuarialfactors.

The actuarial present value of benefits as at June 30, 2019 is based on an actuarial projection of a valuationas at July 1, 2018. The assumptions used in determining the actuarial value of accrued pension benefitswere developed by reference to expected long-term market conditions. Significant long-term actuarialassumptions used in the most recent valuation are a discount rate of 5.60% (2018 - 5.25%), an inflation rateof 2.00% (2018 - 2.00%), and a salary escalation rate of 3.75% (2018 - 3.75%).

On October 4, 2019, the Board of Governors approved an amended Statement of Investment Policies and Procedures, dated September 1, 2019. There were no material changes that would impact the Plan's financial position.



Board Report


To: Board of Governors Date: December 6, 2019 Presented by: Scott Sinclair – Chair, Finance & Property Committee Subject: Northway Endowment Fund & Environmental Sciences Centre

Committee/Board Mandate: The Board of Governors is responsible for ensuring the financial health of the University and the proper management of its buildings, lands and capital projects. The Finance & Property Committee assists the Board in carrying out these responsibilities by monitoring the institution's financial, property and capital affairs and making related policy recommendations.

In its finance role, the Committee may make recommendations to the Board affecting the financial health or accountability of the University. In its property role, the Committee is responsible for recommending financial oversight of major capital projects and related financing decisions.

Motion for Consideration (if applicable): That the Board of Governors authorize that the remainder of undesignated interest earned from the Mary Northway Estate since 2015/2016 continue be allocated to the cost of the Environmental Sciences Centre until the outstanding balance is fully paid, a total of $288,333.

Executive Summary: The Mary Northway Estate (Northway Endowment) has a book value of $621,653 and a current market value as at April 30, 2019 of $1,221,157. In 1993 and in subsequent years, the Board of Governors approved the allocation of the remainder of undesignated interest income from the Northway Endowment to cover the funding shortfall for the Environmental Sciences Centre. The most recent Board approval was in the spring of 2010 for five years to April 30, 2015.

This arrangement was to be reviewed by the Board in the spring of 2015, but there is no record of this review occurring. However, in April 2016 a transfer of $42,721 was made to the Environmental Sciences Centre leaving an outstanding balance as at April 30, 2016 of $245,612. Since April 2016, the Northway Endowment has paid out $138,087 to the expendable trust account, which has not yet been transferred. Assuming prior and future allocations are approved and the annual payout from the Northway Endowment to the

ITEM 9.0 - NORTHWAY ESTATE BEQUESTBOARD OPEN SESSION - December 6, 2019

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of 5 expendable trust account remains over $40,000, the outstanding balance will be fully funded by April 2022.

Analysis/Alternatives Considered: The University received an endowment bequest from the Mary Northway Estate, of which one-half was designated for specific projects (Trent Archives, Bata Library, Canadian Studies, and maintenance of Windy Pines) and the other half, as directed by Mary Northway, was a general bequest to be used for:

1. Renovations to the University Archives, which were subsequently fully funded 2. The authority and accountability for the remainder of the Endowment is the

responsibility of the Board of Governors.

On November 26, 1993, the Board of Governors approved the allocation of the remainder of undesignated expendable income from the Mary Northway Estate to cover the outstanding balance of the Environmental Sciences Centre for a three-year period beginning 1993/1994. Board approval for the continuation of this allocation arrangement was subsequently extended in 1997, 2000, 2005 and 2010. A summary of the historical Board resolutions is provided in Appendix A.

Construction of the Environmental Sciences Centre was completed by April 30, 1994 at a total cost of $18.2 million. Total revenue of $15.7 million consisted of $4.8 million in fundraising, $9.8 million in Ontario provincial grants, and $1.1 million from other sources. As at April 30, 1994, the funding shortfall was $2.5 million. Subsequent adjustments, fundraising, and transfers reduced the shortfall to $288,333 as of April 30, 2015.

The most recent Board approval was in the spring of 2010 for five years to April 30, 2015, to be reviewed by the Board of Governors in the spring of 2015. Unfortunately, there is no record that the Board reviewed this arrangement in 2015 as intended. However, a transfer of $42,721 from the Northway Endowment continued in April 2016. No subsequent transfers have been made. The current outstanding balance on the Environmental Sciences Centre is $245,612.

Financial Implications: The following provides a summary of the outstanding balance on the Environmental Sciences Centre as at April 30, 2019:

Funding shortfall as of April 30, 1994 $ 2,525,349 Adjustment to construction costs $ (56,327) Interest expense on capital loan (now fully paid) $ 367,330 Less subsequent funding received to April 30, 2015 Fundraising Transfers from expendable trust Transfer from research Transfer from operating fund

$1,672,587 $ 760,432 $ 15,000 $ 100,000

$(2,548,019) Outstanding Balance as of April 30, 2015 $ 288,333 Transfer from expendable trust April 2016 $ (42,721) Outstanding Balance as of April 30, 2019 $ 245,612


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of 5 Since April 2016, the Northway Endowment has paid out $138,087 to the expendable trust account, which has not been transferred to the outstanding balance on the Environmental Sciences Centre. Assuming prior and future allocations are approved and the annual payout from the Northway Endowment to the expendable trust account remains over $40,000 for the next three years, the outstanding balance will be fully funded by April 2022, as shown in the following table.

Transfers from expendable trust, pending Board approval April 2017 April 2018 April 2019

$44,574 $46,335 $47,178

$ 138,087 Estimated amounts from expendable trust in future periods, pending Board approval April 2020 April 2021 April 2022

$40,000 $40,000 $27,525

$ 107,525 Total Pending Transfers from Expendable Trust $ 245,612

In summary, this request is for Board approval of the total transfers from the expendable trust since April 2015 in the amount of $288,333 ($245,612 plus $42,721 transferred in 2016). There is no incremental cost to the University resulting from this request.

Enterprise Risk Assessment: Unfunded capital projects create additional financial pressures on the operating plan and negatively impact the University’s financial position. There is no other identified funding source available to cover the shortfall on the Environment Sciences Centre account.

Next Steps: Assuming approval by the Board of Governors, the annual payout from the Northway Endowment to the expendable trust account will be transferred to the capital account until the Environmental Sciences Centre balance is fully paid.

Alignment with Mission, Vision, Values, Strategic Plan: Aligns with financial sustainability and the University’s mission to “foster sustainability, in its environmental, social and economic dimensions, on our campuses and in all aspects of our work.”

Consultation: The Advancement Office supports the continuation of the allocation of the undesignated expendable income from the Northway Endowment to cover the financing costs of the Environmental Sciences Centre.

Compliance with Policy/Legislation: This request is in compliance with the donor’s bequest.

Supporting Reference Materials (attached): Appendix A – Northway Property Bequest: History of Board Resolutions


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BOARD OF GOVERNORS Trent University

1600 West Bank Drive Peterborough, ON Canada K9L 0G2

Telephone (705) 748-1387 Facsimile (705) 748-1246

Appendix A – NORTHWAY PROPERTY BEQUEST

History of Board Resolutions Prepared as of October 23, 2019 TRENT UNIVERSITY BOARD OF GOVERNORS accepted title to the Northway Property on February 12, 1982. EXCERPT FROM BOARD OPEN SESSION MINUTES – SEPTEMBER 29, 1989: TRENT UNIVERSITY BOARD OF GOVERNORS on September 29, 1989, by resolution, established a policy for the undesignated half of the expendable income from the Northway endowment, as follows:

That until further action by the Board of Governors, the undesignated half of the expendable income from the Mary Northway endowment be allocated annually to the general University Operating Budget. It is understood that the capital from this endowment may not be encumbered without a separate Board resolution. Carried

-and- That the [Audit and Finance] Committee monitor allocations from the Northway Endowment income to the general University operating budget as part of the annual budget approval process; and that this policy be reviewed by the Board no later than five years after its approval. Carried

EXCERPT FROM BOARD OPEN SESSION MINUTES – NOVEMBER 26, 1993:

At the previous Board meeting, approval had been given to allocate $10,000 per year of the undesignated interest from the Mary Northway Estate for ten years to cover the cost of current renovations to the University Archives. The Audit and Finance Committee was recommending that the balance of this undesignated interest (approximately $10,000 per year) for three years be put toward the cost of the Environmental Sciences Building to help offset the reduced level of support from the City. In accordance with this recommendation, the Board resolved:

THAT the remainder of the undesignated interest from the Mary Northway Estate (i.e. that portion not designated for the University Archives renovations) be allocated to the costs of the Environmental Sciences Building, as required, for a three-year period beginning in 1993-94. Carried


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EXCERPT FROM BOARD OPEN SESSION MINUTES – FEBRUARY 28, 1997: Undesignated Interest, Northway Estate. On the advice of the Audit and Finance Committee, the Board resolved:

THAT the remainder of the undesignated interest from the Mary Northway Estate; i.e. the amount not allocated for the University Archives project continue to be allocated for a further three years to the costs of the Environmental Sciences Centre, and that this decision be reviewed in the spring of 2000. Carried

EXCERPT FROM BOARD OPEN SESSION MINUTES OF FEBRUARY 25, 2000:

Northway Allocation. Since 1993 the Board had allocated a portion of the undesignated interest from the Mary Northway Estate (approximately $24,000 per year) toward the cost of the Environmental Sciences Centre. This was thought to be an appropriate use of the funds, consistent with the donor’s wishes. On the recommendation of the Audit & Finance Committee, the Board resolved:

THAT the remainder of the undesignated interest from the Mary Northway Estate be allocated to the cost of the Environmental Sciences Centre for a further five years (to be reviewed in the spring of 2005). Carried

EXCERPT FROM BOARD OPEN SESSION MINUTES OF DECEMBER 2, 2005:

Northway Estate Interest. Based on a recommendation by the Finance & Property Committee regarding use of the expendable income from the undesignated half of the Northway bequest, the Board resolved:

THAT the remainder of undesignated interest from the Mary Northway Estate be allocated to the cost the Environmental Sciences Centre for a further five years (2005-06 to 2009-10) to be reviewed by the Board of Governors in the spring of 2010. Carried

EXERPT FROM BOARD OPEN SESSION MINUTES OF JUNE 24, 2010:

Designation of Interest from Northway Endowment. The Chair of the Finance & Property Committee explained that the Board of Governors had been given jurisdiction over 50% of the undesignated interest from the Northway Estate, and since 1989 had been designating these funds to pay for the amount outstanding on the Environmental Sciences Building. It was moved by Mr. Sherratt, seconded by Mr. Butt:

That the remainder of the undesignated interest earned from the Mary Northway Estate continue to be allocated to the cost of the Environmental Sciences Building for a further five years, 2010 to 2015, to be reviewed by the Board of Governors in the spring of 2015. Carried.


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Board Report


To: Board of Governors Date: December 6, 2019 Presented by: Scott Sinclair, Chair – Finance and Property Committee

Kent Stringham, VP Finance and Administration (A) Subject: 2020/2021 International Tuition Fees


The Board of Governors is responsible for ensuring the financial health of the University and the proper management of its buildings, lands and capital projects. The Finance & Property Committee assists the Board in carrying out these responsibilities by monitoring the institution’s financial, property and capital affairs and making related policy recommendations.

In its finance role, the Committee recommends levels of student fees and may make financial policy recommendations to the Board including but not limited to policies on tuition and ancillary fees.


That the Board of Governors approve:

1) the international undergraduate tuition rates for 2020/2021 as presented, and furthermore, authorize that these rates by cohort will increase 5% annually for the continuous duration of the student’s program of study; and

2) the international graduate tuition rates for 2020/2021 as presented.

Executive Summary:

In March 2019, the Ministry of Training, Colleges and Universities (MTCU) approved the Tuition Fee Framework that mandated a 10% reduction in tuition fees for the 2019/2020 academic year compared to 2018/2019 and a tuition fee freeze for the 2020/2021 academic year. This Tuition Fee Framework applies to all publicly funded programs at each year of study for funding-eligible students (primarily domestic graduate and undergraduate students).

ITEM 10.0 - INTERNATIONAL TUITION FEESBOARD OPEN SESSION - December 6, 2019

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The Tuition Fee Framework does not apply to programs that are ineligible for operating grant funding (e.g. full cost recovery or self-funded programs) and most international students. Therefore, international tuition rates are subject to Board approval.

Senior Administration is proposing international fee increases for 2020/2021 as follows:

5% for all international undergraduate programs; 3% for all international graduate research-based programs, including Applied

Modelling and Quantitative Methods (AMOD) Big Data/Financial Analytics; 3% for all international graduate professional stream programs except AMOD; and an increase to $25,000 for international students in the AMOD professional stream

program.

Analysis/Alternatives Considered:

Based on a comparison of 2019/2020 international tuition rates in the Business and Arts programs categories, Trent University’s international undergraduate tuition fees are third lowest in Ontario (see Appendix B). As a result, there is room to increase Trent’s fees in a way that balances affordability with the perception of program quality. Depending on what other institutions do with their fees, even the proposed 5% increase in undergraduate international fees may only raise the University to fourth lowest in Ontario (if that).

For graduate research-based programs, a 3% increase is reasonable and manageable. The majority of any increase in these fees is offset by a corresponding increase in tuition fee waivers resulting in nominal net revenue, if any.

Most of the graduate professional programs are new and recently approved by the Ministry, including approved tuition fees. Therefore, the international fees for these programs are comparable to current market rates. The proposed 3% increase in these programs (with the exception of AMOD) is reasonable and manageable. It is anticipated that this modest increase in fees will continue to offer competitive rates while not deterring new applicants in newer programs that are still growing.

The current international tuition fees for the AMOD professional stream program are substantially below comparable market rates. Therefore, Graduate Studies is proposing an increase to $25,000 per academic year based on a recent market comparison. This program has a high number of international students (currently 88 of 92 accepts for September 2019 are international). The proposed increase in fees is not likely to decrease student interest in the program.


The proposed increase in undergraduate international tuition fees is estimated to generate approximately $745,000 in additional tuition revenue. The proposed increase in graduate international tuition fees is estimated to increase tuition revenue by approximately $490,000, primarily resulting from the increase in AMOD tuition rates. The


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estimated increase in tuition revenue is before related increases in student financial aid and scholarships.


Increasing tuition fee revenue will better position the University to maintain and/or enhance the resources required (including faculty, services, and administration) to support the academic outcomes of the growing international student population.

Next Steps:

Once approved, the international tuition fees will be published on the University’s website and included in communication materials and recruiting publications.

Alignment with Mission, Vision, Values, Strategic Plan:

This recommendation is aligned with Trent's mission to "foster sustainability, in its environmental, social and economic dimensions, on our campuses and in all aspects of our work" and Trent's Strategic Plan for "financial sustainability: exploring all means necessary to securing a healthy financial future".

Consultation: The proposed international tuition rates are being recommended based on consultation with the AVP, International and the Dean, Graduate Studies.

Compliance with Policy/Legislation:

International tuition fees are not currently regulated under the Tuition Fee Framework established by the MTCU.

Supporting Reference Materials (attached):

Appendix A – Proposed International Tuition Fees for 2020/2021

Appendix B – Comparison of International Tuition Rates for 2019/2020


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Appendix A – Proposed International Tuition Fees for 2020/2021

2019/2020 Approved Fee

2020/2021 Proposed Fee

Change ($) Change (%)

Undergraduate International

Full-time - first year and continuing (post-2018)

$ 21,384.90 $ 22,454.15 $ 1,069.25 5.0%

Full-time - continuing (2018) $ 20,577.99 $ 21,606.89 $ 1,028.90 5.0% Full-time - continuing (2017 and prior) $ 19,733.86 $ 20,720.55 $ 986.69 5.0%

Part-time (per course) - first year and continuing (post-2018)

$ 4,276.98 $ 4,490.83 $ 213.85 5.0%

Part-time (per course) - continuing (2018) $ 4,115.59 $ 4,321.37 $ 205.78 5.0% Part-time (per course) - continuing (2017 and prior)

$ 3,946.77 $ 4,144.11 $ 197.34 5.0%

Graduate International

Full-time (research-based) $ 19,792.00 $ 20,385.76 $ 593.76 3.0% AMOD - Big Data/Financial Analytics $ 19,792.00 $ 25,000.00 $ 5,208.00 26.3%

Professional Programs

Masters in Educational Studies - full-time $ 20,262.16 $ 20,870.02 $ 607.86 3.0% Masters of Science in Forensic Science $ 25,235.00 $ 25,992.05 $ 757.05 3.0% Graduate Diploma (Type 3) of Instrumental Chemical Analysis

$ 15,785.78 $ 16,259.35 $ 473.57 3.0%

Masters of Instrumental Chemical Analysis $ 23,690.00 $ 24,400.70 $ 710.70 3.0% Graduate Diploma (Type 3) Mental Health & Addictions Nursing (5 course program)

$ 13,560.98 $ 13,967.81 $ 406.83 3.0%

Graduate Diploma (Type 3) Bioenvironmental Monitoring & Assessment

$ 16,135.98 $ 16,620.06 $ 484.08 3.0%


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Masters of Bioenvironmental Monitoring & Assessment

$ 23,690.00 $ 24,400.70 $ 710.70 3.0%

Masters of Management $ 27,810.00 $ 28,644.30 $ 834.30 3.0% Graduate Diploma (Type 3) Educational & Community Leadership (5-course program) (pending Ministry approval

$ 19,055.00 $ 19,626.65 $ 571.65 3.0%

Nursing Masters of Science $ 20,462.63 $ 21,076.51 $ 613.88 3.0%


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Appendix B – Comparison of International Tuition Rates for 2019/2020

18287

19325

21384

21935

23731

24298

24680

25320

25502

25960

26557

26975

27601

31042

33449

33614

36160

46290

53290

Algoma

Nipissing

Trent

Ont Tech

Lakehead

Guelph

Windsor

Laurier

Carleton

Laurentian

Brock

York

Ryerson

Western

McMaster

Waterloo

Ottawa

Queens

Toronto

INTERNATIONAL TUITION 2019-2020 ARTS PROGRAMS

18287

19325

21384

24330

26514

27000

27300

27568

27764

28860

29208

29469

31726

37370

38160

44378

44800

48942

53290

Algoma

Nipissing

Trent

Ont Tech

Laurentian

Lakehead

Windsor

Guelph

Brock

Laurier

Carleton

York

Ryerson

Waterloo

McMaster

Ottawa

Western

Queens

Toronto

INTERNATIONAL TUITION 2019-2020 BUSINESS PROGRAMS


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Board Report


To: Board of Governors Date: December 6, 2019 Presented by: Scott Sinclair, Chair – Finance and Property Committee

Subject: 2020/2021 Current Fiscal Environment

Committee/Board Mandate: The Board of Governors is responsible for ensuring the financial health of the University and the proper management of its buildings, lands and capital projects. The Finance & Property Committee assists the Board in carrying out these responsibilities by monitoring the institution’s financial, property and capital affairs and making related policy recommendations.

In its finance role, the Committee monitors budget projections and debt levels and recommends operating, ancillary and capital budgets for the approval of the Board of Governors. It recommends levels of student fees, spending authority, loans and lines of credit for Board approval. The Committee makes recommendations to the Board for the approval of any contract or purchase the total value of which exceeds the level of spending established for the President. The Committee may make financial policy recommendations to the Board including but not limited to policies on tuition and ancillary fees, banking, borrowing and purchasing. It may make recommendations to the Board concerning fiscal planning, internal financial controls or other areas affecting the financial health or accountability of the University. The administration may consult with the Committee on the subjects for internal audits and provide follow-up reports.

Motion for Consideration (if applicable): That the Board of Governors receive for information an update on the current fiscal environment.

ITEM 11 - 2020-2021 BUDGET - FISCAL ENVIRONMENT


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Executive Summary: This report summarizes the fiscal environment as of November 28, 2019 and includes topics of enrolment projections, government grants, tuition rate policy, student aid and scholarships, salaries, benefits and pension costs, other expenses and capital spending. Also included is the budget development timeline and process.

Analysis/Alternatives Considered: Appendix A provides details of the current fiscal environment and sensitivities for Trent to consider in the next budget cycle for 2020/2021 to 2022/2023.

Financial Implications: Please refer to Appendix A.

Enterprise Risk Assessment: The financial health of the University is paramount to the University's overall success and ability to fulfill its academic mandate and meet student expectations. An assessment of the fiscal environment and the associated sensitivities for Trent must be given careful consideration when making decisions regarding budget planning assumptions, the allocation and use of limited resources, and mitigating strategies if financial loss is anticipated.

Next Steps: Appendix A includes the budget development timeline and process. The Finance and Property Committee will receive an update on progress with the 2020/2021 operating budget at its next meeting in January 2020.

Alignment with Mission, Vision, Values, Strategic Plan: To fulfill their responsibilities, Governors should be informed of the University's financial situation. Regular financial updates will maintain Governors' awareness of the University's current financial status, and allow for input and oversight where needed. Updates on the fiscal environment are in alignment with Trent's mission to "foster sustainability, in its environmental, social and economic dimensions, on our campuses and in all aspects of our work" and Trent's Strategic Plan for "financial sustainability: exploring all means necessary to securing a healthy financial future".

Consultation: Trent has prepared the fiscal environment update based on information provided by various sources, including the Ministry of Training, Colleges and Universities (MTCU),



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Council of Ontario Universities (COU), Council of Senior Administrative Officers (CSAO), Council of Ontario Financial Officers (COFO), Council on University Planning and Analysis (CUPA), and other universities. The information regarding pension costs was provided by AON, the Universities’ actuaries.

Compliance with Policy/Legislation: Complying with a Board of Governors directive, the full Board will receive regular financial updates regarding the fiscal environment, through the Finance and Property Committee.

Supporting Reference Materials (attached): Appendix A – Current Fiscal Environment, November 2019



APPENDIX A

1

Budget Planning – 2020/2021 to 2022/2023 CURRENT FISCAL ENVIRONMENT, BUDGET PROCESS AND TIMELINES For Board of Governors December 2019 _

INTRODUCTION

A wide range of internal and external factors need to be considered in determining the fiscal constraints that will challenge Trent University. In the spirit of open communication and developing budget awareness and accountability at various levels of the organization, what follows is a discussion of various budget factors and the implications for Trent as it seeks input for the update of these assumptions.

Budget Process

The budget process begins in the Fall each year with discussions with various groups in the University community regarding the process, current fiscal environment and timelines. In early December, budget developers receive a budget package that includes: their base and RCM budgets updated to reflect salary escalation, inflation and other known changes in staffing and other expenses; budget guidelines and key planning assumptions, including multi-year enrolment projections; in-year financial statements to assist budget owners in monitoring their current year’s performance and assessing potential future resource requirements; and a budget adjustment template to aid in the identification of proposed budget reduction strategies or recommended new strategic investments. Budget submissions are due in late January with presentations to the President / Vice-Presidents during February. This year, the intent is to provide a recommended budget to Finance and Property and to the Board of Governors for consideration and approval in March 2020. Appendix A outlines the timelines for this year’s consultations and process.

Multi-year Planning

Although multi-year planning was suspended last year due to significant uncertainties identified in the fiscal environment at that time, Trent plans to reinstate multi-year budgeting previously introduced in 2017 as a way to promote longer-term planning and more efficient use of critical resources required to address projected enrolment growth and to align with the University’s Strategic Plan. This year’s budget cycle will be for the three years 2020/2021, 2021/2022, and 2022/2023. Each year, the key assumptions used in the rolling three-year budget planning cycle, including enrolment projections, anticipated funding and other revenues, salary and other inflationary pressures, will be reviewed and updated based on relevant changes in the fiscal environment and more current information. These assumptions will then be communicated to budget account owners for their use in preparing their operating plans.



APPENDIX A

2

Responsibility Centered Management (RCM)

Responsibility Centered Management (RCM) will continue to be a key consideration, along with other principles including alignment with the University’s Strategic Plans, academic needs, and legislative or other mandatory requirements, when prioritizing and recommending new investments and changes to resource allocations. RCM is an activity-based budgeting model intended to promote stronger linkages to academic goals and priorities. The aim of RCM is to improve financial sustainability by emphasizing the University’s strengths in teaching, research and services, and by supporting selected opportunities and innovations. The budget model attributes operating fund revenues to the academic divisions that generate them, primarily through tuition and operating grants largely determined by student enrolment. The decanal units each contribute to a University Fund for institutional strategic priorities, and proportionately share in the indirect costs of the University (for example, library services, information technology, student services, occupancy costs, and administration). The remaining net revenues of each decanal unit, plus any allocation of the University Fund (either for new strategic investments or to partially mitigate the impact of changes during transition) support their direct costs, including instructional staff and resources for the provision of their academic programming. While RCM does not in and of itself increase net revenue for the University, it does promote innovative and efficient delivery of academic programming and enrolment planning by allowing increased revenue and cost savings to remain in the decanal unit that generates the positive change. The most significant way to improve performance under RCM is to increase revenue by growing enrolment and introducing new programming. Given the recent changes in Ministry funding, including the absence of enrolment growth funding and the shift from corridor funding to at-risk performance-based funding, the decanal units under the RCM will experience more challenges in meeting RCM targets as enrolment growth and new programming may not result in additional revenue for the decanal unit(s) or the University. As a result, more emphasis will be put on finding efficiencies by reducing costs without compromising the quality of programs and services, and without pitting one decanal unit against another in a way that may negatively impact the academic mission of the University. In a challenging fiscal environment, the RCM approach will, over time, allow the University to position itself in a way that addresses budget challenges and fosters a sustainable budget in the long term by striving to allocate resources in a way that relies on fiscally relevant criteria that can be clearly measured. RCM will be sensitive to Trent’s fiscal realities and the complexities that arise. Administrative and support functions will be assessed against available University benchmarks and adjusted accordingly. An important feature will be the availability of some incentive funding to help in the development of new programs and revenue opportunities. Further information about the University’s introduction of RCM is available at: https://www.trentu.ca/financialservices/welcome/financial-statements-budget-reports



https://www.trentu.ca/financialservices/welcome/financial-statements-budget-reports

APPENDIX A

3

KEY ENVIRONMENT FACTORS FOR CONSIDERATION

Fall Economic Statement

The Fall Economic Statement (FES) released November 6, 2019, titled “A Balanced and Prudent Plan to Build Ontario Together”, continues its focus to “…put more money in people’s pockets, encourage job creation, make communities healthier and safer, build a world-class transportation network and deliver government programs in a smarter way.” While the FES did not identify any significant new policies related to the University sector nor did it include any new funding announcements or funding reductions for universities, it did signal a positive shift in tone to engage with the public with a more collaborative approach. The government’s plan focused on six categories:

• Make life more affordable; • Prepare people for jobs; • Make Ontario more competitive; • Connect people to places; • Build healthier and safer communities; and • Build smarter government.

Fall Economic Statement: Sensitivities for Trent While Ontario universities did not feature prominently in the FES, the Ministry did reaffirm the tuition fee cut and subsequent freeze for 2020/2021, the Student Choice Initiative and the SMA3, including publicizing the performance-based metrics focused on jobs and economic impact that will be tied to 60% of operating funding by 2024/2025. Effectively, fixed Ministry funding (with some at risk) and frozen tuition rates increases operating pressures, creates more reliance on international students, and requires universities to adopt an enrolment growth strategy to offset lost or frozen revenues and inflationary pressures. There were some references in the FES to additional supports for student mental health and indigenous students, but mostly related to K to 12 rather than higher education. Trent, like other institutions, has identified an increase in mental health and accessibility needs and continues to rely on limited special purpose grants, continuation of which has not been confirmed. The Ministry continues to be supportive of the university sector jointly sponsored pension plan, which is positive for Trent as the University works towards joining the UPP in 2022.

Enrolment Projections

The key driver in the University’s planning is student enrolment as this generates a significant portion of the University’s operating revenue through tuition fees and enrolment-based provincial operating grants. Resources required for academic programing are determined by the number and types of students. Other university operations and support services (e.g. student services, wellness, libraries, etc.) as well as ancillary services (e.g. housing and dining services, etc.) are significantly influenced by the student population.



APPENDIX A

4

Trent continues to experience growth in student enrolment exceeding that previously planned. Since 2016/2017, total full-time equivalents (FTEs) are projected to increase by 23% to approximately 10,295 FTEs in 2019/2020.

Note: 2019/2020 enrolment projections are based on summer and fall actual enrolment and prior years’ experience regarding fall-to-winter ratios and retention rates for winter projections. For this budget cycle, senior administration is recommending a conservative approach to enrolment projections. This approach will allow the University to plan sufficient resources and address capacity challenges related to growing enrolment while ensuring the budget is flexible to respond to unmet enrolment targets should there be any. The following charts provide preliminary undergraduate head count estimates by campus based on the following high-level budget assumptions: 1. Undergraduate domestic intake will continue to increase in a controlled manner at

both campuses. For Peterborough, domestic intake is expected to increase by 2.0%, 1.5% and 1.0% in 2020/2021, 2021/2022 and 2022/2023 respectively. For Durham, domestic intake is anticipated to increase by 5.0% in each of the fiscal years in this budget cycle.

2. Nursing, B. Ed, Upper-Year Social Work and Certificates intake will be held constant at current levels or capped enrolment;

3. The overall goal is to increase international students to at least 10% of Trent’s

enrolment by 2024 (currently at about 8%). In alignment with strategies for international growth, it is expected that international intake will gradually increase over the next three years;

4. Continuation rates will be based on the average of the most recent two years,

conservatively adjusted as necessary;

2016/2017 2017/2018 2018/2019 2019/2020Actual 8,356 8,960 9,650 10,295Budget 8,075 8,430 9,254 9,970

02,0004,0006,0008,000

10,00012,000

Total Student Full-time Equivalents

+7.2%

+7.7%

+6.3%



APPENDIX A

5

5. New programs to be introduced in 2020/2021 or future fiscal years have not been included in these estimates; it is assumed that any new programs will be revenue neutral in the initial years of introduction and will be considered as new investments in the budget development; and

6. Graduate enrolment will be held at capped graduate spaces for PhD programs and expected 2019 levels for Masters programs, which are currently exceeding the cap. Furthermore, international graduate enrolment is expected to increase by 10% from Fall 2019 counts.

Work is currently being undertaken to convert the head count projections to student full- time equivalents (FTEs) and weighted grant units (WGUs) for the purposes of planning revenues and resources, and for RCM modelling.

7,8058,240

8,7539,130

9,4509,760

9,950 10,050 10,100

7,805

8,240

8,640

8,9709,190

9,380 9,470 9,510

7,500

8,000

8,500

9,000

9,500

10,000

10,500

11,000

2017 2018 2019 2020 2021 2022 2023 2024 2025

Peterborough Undergraduate Headcount Estimates

Estimate Range Average Estimate (11/03/19)18-19 Budget Guidelines



APPENDIX A

6

Enrolment Projections: Sensitivities for Trent There are many factors that could substantially alter enrolment projections. Recent changes in the funding formula may alter the behavior of other institutions regarding offers and accepts, or changes to the scholarship program and OSAP program may alter the decisions of students. Discussions are also underway regarding entrance averages that may influence the University’s ability to control and gradually slow down intake to within manageable levels. Continuation rates may change depending on student needs or the University’s ability to meet higher student demand. The impact of the Durham Expansion project is also uncertain as projections can fluctuate significantly with smaller numbers. The low vacancy rates in Peterborough are creating a housing challenge for recruitment and first year guarantees. The increase in deferrals and reliance on transfer students are also factors that need to be considered. Competition for international students and related external issues such as obtaining visas also present challenges. The continued increase in enrolment is welcome news for Trent, but also places additional pressures on resources (teaching, support staff, space, infrastructure, etc) required to address the increase in enrolment, especially if enrolment growth is not funded.

Government Grants

The Strategic Mandate Agreement (SMA3) will be a five-year agreement commencing with fiscal 2020/2021. Total eligible funding for the University will be fixed during the SMA3 based on the sum of the 2018/2019 Core Operating Grant (determined using the 2016/2017 corridor mid-point adjusted slightly for 2018/2019 graduate growth), the Performance Grant and Special Purpose Grants. SMA3 will link funding to labour market outcomes with 25% of total eligible funding tied to performance outcomes in 2020/2021 growing to 60% of total eligible funding in 2024/2025.

1,2161,382

1,6321,780

1,920 2,050 2,160 2,250 2,300

1,2161,382 1,450 1,520 1,580 1,630 1,660 1,680

1,000

1,500

2,000

2,500

3,000

2017 2018 2019 2020 2021 2022 2023 2024 2025

Durham Undergraduate Headcount Estimates

Estimate Range Average Estimate (11/03/19)18-19 Budget Guidelines



APPENDIX A

7

Performance-based funding will be linked to ten metrics, six of which will be aligned with priorities in skills and job outcomes, and four metrics related to economic and community impacts. The University will establish its own institutional strength/focus metric and institution-specific economic impact metric; the remaining eight metrics are pre-determined by the Ministry. The University will be measured each year against its own targets based on historical performance. The Ministry’s intent is to set targets that promote continuous improvement; therefore, the targets and bands of tolerance will be recalculated by the Ministry each year. The University has the flexibility to weight the metrics that best reflect its differentiated strategic goals. These weightings will identify the portion of performance-based funding at risk for each metric if the University does not perform within the established band of tolerance. The University will have one opportunity during the term of SMA3 to adjust the assigned weightings.

Government Grants: Sensitivities for Trent Trent’s enrolment is projected to increase over the next five years, however under the SMA3 model, enrolment growth will not be funded which has a significant impact on the revenue and resources of the University. For example, projected enrolment for 2019/2020 is over 20% higher than the fixed corridor midpoint value for the five-year period of the SMA3. This translates to approximately $7 million to $8 million in unfunded enrolment. Failure to achieve performance targets will put performance funding at risk, resulting in lost government funding. If Special Purpose Grants are reduced, there will be an added pressure on the operating budget to reallocate resources to offset the loss of revenue in order to avoid the negative impact of discontinuing these much-needed programs. With fixed Ministry funding for eligible (primarily domestic) students, universities including Trent will increase their reliance on growing international student enrolment, creating more competition and adding more operating pressures to provide the needed supports for this student population.

Tuition Rate Policy

In March 2019, the Ministry of Training, Colleges and Universities (MTCU) approved the Tuition Fee Framework that mandated a 10% reduction in tuition fees for the 2019/2020 academic year compared to 2018/2019 and a tuition fee freeze for the 2020/2021 academic year. This Tuition Fee Framework applies to all publicly funded programs at each year of study for funding-eligible students (primarily domestic graduate and undergraduate students). This policy is governed and monitored by the provincial government through the annual Tuition Fee Compliance report.



APPENDIX A

8

The Tuition Fee Framework does not apply to programs that are ineligible for operating grant funding (e.g. full cost recovery or self-funded programs) and most international students. Therefore, international tuition rates are subject to Board approval. Trent currently has the third lowest international tuition fees of Ontario universities. In an effort to grow international enrolment and remain competitive, senior administration is recommending an increase of 5% for all international undergraduate fees and an increase of 3% for most international graduate research-based and professional programs for each year of the budget planning cycle. Tuition Rate Policy: Sensitivities for Trent At this time, the Tuition Fee Framework has not been established for fiscal years beyond 2020/2021. Changes to the policy have the potential to make a significant impact on the University’s revenues. With fixed Ministry funding, many universities including Trent, are adopting an enrolment growth strategy reliant on tuition-only revenue to offset inflationary pressures.

Student Aid and Increased Scholarship Utilization

The University has historically provided a high level of student aid relative to comparator universities, consistently standing at or near the top of university rankings in the percentage of its operating budget expended on scholarships and bursaries. Trent was #1 in Canada for scholarships and bursaries in 2019. Student aid and scholarship expense is a highly variable cost dependent primarily on student enrolment and academic qualifications of the student body. In 2018/2019, Trent made changes to its scholarship program to eliminate full tuition, which has helped mitigate the negative impact of increased enrolment on this expense. No further changes to the program are planned at this time. Trent currently estimates undergraduate scholarship expenses to be approximately 11.0% of gross undergraduate tuition fees revenue. International scholarship costs are estimated at 6.37% of gross international tuition fees revenue. Both of these assumptions are currently being reviewed based on historical trends. The Ministry requires universities to reserve a portion of additional revenue resulting from tuition fee increases to eligible domestic students to ensure that institutions can meet Student Access Guarantee (SAG) requirements for need-based student aid, and provide other forms of assistance to students in need. Recent changes to OSAP have increased the University’s SAG obligation, making it more difficult to meet other commitments for bursaries, work study programs, and needs-based scholarships. These changes are putting increased pressure on the scholarship budget. The current estimate for tuition set-aside of 6% of tuition fee revenue for eligible domestic undergraduate and graduate students is currently under review in light of these factors.



APPENDIX A

9

Student Aid and Increased Scholarship Utilization: Sensitivities for Trent Careful monitoring of the scholarship program will be required. As enrolment increases, so too does scholarship and financial aid costs. As entrance grades increase, the quality of the student body will increase thereby increasing scholarship utilization. In addition, it will be important to monitor the impact of any changes in the scholarship program with respect to the University’s reputation and rankings.

Salaries and Benefits

Compensation increases for all employee groups are based on collective agreements and progression through the ranks and we will continue to see an escalation of salary costs. In 2018/2019, salaries comprised approximately 74% of operating expenditures. Bill 124 passed legislation in November 2019 restricting salary increases to 1% (excluding merit and step increases) for a three-year period commencing on the expiry of existing collective agreements. Further details are expected to be released soon regarding this initiative and the Executive Compensation initiative. Based on current information from the University’s benefits consultants, Trent is anticipating an overall increase in benefit costs. Indications are that long-term disability may increase by up to 10%, extended health may increase by between 7.0% and 12.0%, and dental may increase by between 5.0% and 10.0%. Increases in benefit costs are currently under negotiation to reduce the impact on the operating budget. Salaries and Benefits: Sensitivities for Trent Increases in full-time academic and administrative staff substantially increases the compensation pressures imposed on Trent. Very careful consideration to full-time positions should be considered. Changes to the collective agreements during the three-year budget cycle may have a significant impact on the operating budget. For example, negotiations have just begun with CUPE1 as that collective agreement expired August 31, 2019. The CUPE2 agreement expires August 2021, the TUFA agreement expires June 2022, and the OPSEU agreement expires July 2022.

Pension Costs

Trent’s Defined Benefit Pension Plans remain a funding challenge for both members and the University. Unfortunately for Trent, while asset returns are currently tracking to benchmark with very low fees, they are still below the long-term rate of return required to sustain the going-concern obligations of the Plans without increased contributions and/or future benefit reductions. The largest contributing factor to this problem is, as for all other defined benefit plans, historic low interest rates.



APPENDIX A

10

The funding rules for pension plans in Ontario have changed effective for any valuation dates on or after December 31, 2017. The solvency funding target is reduced to 85% of solvency liability. There is now a requirement to include an 8.0% provision for adverse deviations (PfAD), an explicit margin applied to both the going concern liability and normal cost when determining minimum calculations. The resulting increase in liability due to PfAD is only partly offset by the elimination of the conservative margin when calculating the discount rate. These new funding rules affect both registered pension plans. The TUFA Pension Plan is a registered pension plan for which an actuarial valuation is prepared annually with required filing every three years. Based on the preliminary actuarial valuation at June 30, 2019 (a filing year), the University’s normal cost is expected to be 11.48% of payroll. Effective July 1, 2020, going concern and solvency special payments will increase by about $3.5 million. Senior administration is meeting with the Ministry to request continuation of the current solvency relief or approval for a standby letter of credit to defer additional solvency special payments until the conversion into the sector’s jointly sponsored pension plan, targeted for January 2022, which will eliminate the requirement for solvency special payments. The OPSEU/Exempt Pension Plan is a registered pension plan for which an actuarial valuation is prepared annually with required filing every three years. Based on the preliminary actuarial valuation at June 30, 2019 (not a filing year), the University’s normal cost is expected to be 10.14% of payroll. Going concern and solvency special payments remain unchanged for 2020/2021. For the Supplementary Retirement Agreement, annual benefit payments will be required from the operating budget as the assets in the plan were depleted in November 2018. Pension Costs: Sensitivities for Trent The solvency deficits and going concern unfunded liabilities for both the staff and faculty plans continue to grow. These effects are realized in and subsequent to a filing year.

Utilities

As work continues on initiatives under the Energy Performance Contract (EPC), scheduled for completion in Spring 2020, energy consumption is expected to decrease. Savings related to the EPC agreement will be used towards financing the project over the next 10 years so will not lead to operating savings during this budget cycle. Trent is anticipating an announcement pending the Ontario Fair Hydro Plan in early November 2019. In the absence of further information at this time, utilities rates are assumed to be comparable to prior years. Utilities: Sensitivities for Trent Careful consideration of the impact of forecasted future rate changes for utilities will be required in developing the budgets for 2020/2021 and beyond as rates may substantially change over the three-year budget cycle.



APPENDIX A

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Capital – Deferred Maintenance

Deferred maintenance on the physical infrastructure remains a problem for all Ontario universities. The deferred maintenance backlog at Trent was approximately $80 million based on the most recent assessment in 2019. Deferred maintenance and capital projects are currently being determined, which may require additional investments from the operating budget. The current provincial government has not announced the Facilities Renewal Program funding for years beyond 2019/2020. The University typically uses this grant funding of about $500,000 to $750,000 each year to address deferred maintenance. Capital – Deferred Maintenance: Sensitivities for Trent Deferred maintenance remains a challenge for Trent and further investment is needed. There is currently no provision in the operating budget for new deferred maintenance.

Capital – Information Technology

The IT Strategic Plan concluded in April, 2017. A process to update the IT Strategic Plan to identify and prioritize needs is currently underway. A recent estimate by IT places this IT capital renewal cost at $1.2 million per annum. The new Human Resources Information System (HRIS) was recently implemented with a go-live date of November 1, 2019. The one-time implementation costs over the two fiscal years 2018/2019 and 2019/2020 were approved by the Board in fiscal 2017/2018. The on-going operating costs will need to be incorporated into the operating budget. The IT Strategic Planning Committee is currently in the process of identifying any additional IT requirements that may impact the operating budget. Capital – Information Technology: Sensitivities for Trent IT capital spending remains a challenge for Trent and consideration should be given to the level of increased funding needed in this area to support learning and uninterrupted services. There is currently no provision for IT capital renewal in the operating budget.



APPENDIX A

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Appendix A – Timelines

Preliminary Budget Discussions

President / Vice-President Committee November 4 & 18, 2019

Finance and Property Committee November 19, 2019

Faculty Board November 22, 2019

Administration Planning Group December 3, 2019

Operations Management Committee December 3, 2019 Joint Academic Planning & Budget / Provost’s Planning Group December 5, 2019

Board of Governors December 6, 2019

Special TUFA Joint Committee December 12, 2019

Colleges and Student Services Committee January 8, 2020

Budget Preparation Guidelines and budget packages provided to Budget Developers December 6, 2019

Budget submissions due to Financial Services January 24, 2020 Budget presentations to President / Vice-President Committee February 10-12, 2020

Budget Update Discussions

President / Vice-President Committee March 2, 2020

Administrative Planning Group March 2, 2020

Provost’s Planning Group March 3, 2020

Operations Management Committee March 4, 2020

Special TUFA Joint Committee March 12, 2020 Joint Academic Planning & Budget / Provost’s Planning Group March 19, 2020

Faculty Board April 3, 2020

Senate April 7, 2020

Budget Approvals

Finance and Property Committee March 17, 2020

Board of Governors March 27, 2020



· board of governors meeting friday, december 6, 2019 trent university – peterborough symons...

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