26 T he C olle ge fnancial plan is c ompris e d o f tw o budget c omponents operating budget and c apital budget OPER A TING BUDGET T he oper ating budget r epr esents the r ev enues and expenses as sociat ed with the day t oday oper ations of ac ademic st udent ancillary and support servic es R ev enues ar e gener at ed primarily fr om oper ating and special purpose gr ants fr om the go v ernment of Ont ario and st udent t uition f ees Gr ant r ev enues ar e also gener at ed fr om other Pr o vincial and Feder al go v ernment pr ogr ams when av ailable In addition r ev enues ar e gener at ed fr om c ontr act ed servic es and ancillary oper ations such as the parking r esidenc e and f acility r ent als S t udent enr olment is a critic al c omponent in det ermining oper ating budget r ev enues as the enr olment is dir ectly r elat ed t o t uition and ancillary r ev enues C ollege expenses include but ar e not limit ed t o salaries and benefts supplies and mat erials r ecruitment utilities c ontr act ed servic es and other nonsalary r elat ed expenses For pr ogr ams budget expendit ur es ar e based on pr oject ed enr olment and prior y e ar act ual c osts T he c ontribution mar gin fr om the ac ademic pr ogr ams oper ating gr ant plus t uition f ees les s dir ect and indir ect pr ogr am c osts allo ws f or o v erhe ad and support c osts as w ell as pr ogr am dev elopment ac ademic pr ogr am r eview and ac cr edit ation activities and support f or r ese ar ch activities C APIT AL BUDGET T he c apit al budget pr esents the funding sour c es and uses f or c apit al expenses T he annual c apit al budget outlines the C olleges plans f or the y e ar f or infr astruct ur e pr ojects such as pr ogr am equipment inf ormation t echnology def err ed maint enanc e and f acility impr o v ements Funding sour c es f or c apit al include alloc ations fr om MT CU Boar d r eserv es donations and st udent levies A s w ell the C ollege submits applic ations t o Feder al and Pr o vincial go v ernment initiativ es and other funding agencies such as Northern Ont ario Herit age Fund C orpor ation National Scienc es and Engineering R ese ar ch C ouncil and FedNor f or c ert ain initiativ es and as these sour c es ar e c onfrmed the amounts ar e r efect ed in the c apit al budget and f or ec ast 2 0 1 9 2 0 2 0 OPER A TING BUDGET Sault C ollege with our main c ampus in Sault S t e Marie is deeply c ommit ed t o the Northern Ont ario r egion and gr o wing the pr o vincial ec onomy Educ ating o v er 4500 st udents e ach y e ar the C ollege has a signifc ant ec onomic impact on the loc al c ommunity with spinofs in ex c es s of 158 million in o v er all annual ec onomic impact C QI 2 0 12 T he or ganiz ation is a major c ontribut or t o the liv elihood of our r egion and is c ommit ed t o c ontinuing t o enhanc e the Norths ec onomic impact and dev elopment A s the C ollege mo v es int o the next phase of its lif e cy cle it must no w f ocus on sust ainability in a r egion experiencing population decline and an aging demogr aphic A s a r esult the C ollege seeks t o expand int o new mark ets domestic ally and int ernationally T hus the C ollege is adjusting its oper ations t o ensur e quality pr ogr amming and servic es ar e maint ained going f orw ar d T he C ollege must f ocus its at ention t o maint aining the st udent enr olments and on st udent r et ention In addition the C ollege is c ommit ed t o maint aining the high quality of pr ogr amming and servic es as r eport ed in the S t udent Satisf action KPI r esults FINANCIAL PLAN F O R 20 1 9 2020