The U of M board of governors approved the university’s 2024 Annual Financial Report on June 25.

This 60-page report details the university’s financial affairs as of March 31, 2024. Per section 9.4(1) of The Advanced Education Administration Act, a board is required to prepare and submit an annual report of university operations during the fiscal year to the minister of advanced education and training. The report is to include audited financial statements, in addition to any other information the minister may request.

The concluded fiscal year spanned from April 1, 2023 to March 31, 2024.

As of March 31, the university’s net financial assets totaled $939.1 million, composed of $1.3 billion in financial assets and $670 million in endowments. The assets were offset by $1.1 billion in total liabilities. The largest components of liabilities consisted of $509.7 million in deferred revenue and $316.9 million in debt. Incurred debt involved loans made to the university for various initiatives, such as construction of the Active Living Centre and other buildings, infrastructure and maintenance.

Non-endowed portfolio investments, consisting of resources that are held or designated for particular activities, totaled $1.1 billion. Endowed portfolio investments totaled $676 million which includes donations to be held in perpetuity for the use of future generations. The university received $13.8 million in endowed donations from donors in 2023-24.

The university’s cash and cash equivalence of $100.1 million was comprised solely of cash in the bank. $56.6 million in net remeasurement gains, unrealized change in the valuation of financial instruments – was recorded during the year, in part due to a “strong performance” by the Canadian, U.S. and international equity markets. Accumulated remeasurement gains, which represent the total of net unrealized gains and losses mainly from investments, increased to $298.4 million.

Non-financial assets totaled $1.3 billion and consist of assets that are not readily convertible to cash. This figure was largely composed of tangible capital assets, mainly buildings, constructed or acquired and primarily long-lasting. These assets, exceeding six million square feet, provide space for the functions of the university.

Revenue

University revenue in 2023-24 amounted to $1.1 billion – an increase of $113.6 million compared to the previous year. The largest revenue source was provincial grants ($481 million) amounting to 42.7 per cent of the university’s total revenue.

Remaining revenue sources included tuition and related fees ($241.2 million), federal and other government grants ($124.8 million), non-governmental grants ($74.8 million), investment income ($73.9 million), sales of goods and services ($41.2 million), ancillary services ($37.3 million), non-endowed donations ($27.9 million) and other revenue($23.7 million).

Of the $481 million received in provincial grants, the majority ($423.4 million) was provided in support of operating activities. $ 4.8 million was provided for student scholarships and bursaries.

Revenue from tuition and related fees, and from provincial grants, increased from the previous year by $8.6 million and $57.2 million, respectively. The increase in tuition and related fees revenue was due to a tuition and course-related fee bump of 2.75 per cent and higher enrolment numbers.

Revenue from federal and other government grants comprised of $112.9 million from the federal government, $8.8 million from other provinces and $3.1 million from Manitoba government business enterprises and municipal and foreign governments.

Expenses

University expenses totaled $1 billion in 2023-24, up by $87.2 million from the previous year. The increase in expenditures is largely due to compensation-related increases, with $27.1 million in salary increases.

Among the largest expenses by function incurred in 2023-24 is instruction ($429.8 million) at 41.1 per cent of total expenses. Instruction expenses, up $37.6 million (9.6 per cent) From the previous year, include costs associated with direct educational delivery and academic functions.

The remainder of reported expenses by function include sponsored research ($160.2 million), facilities ($133.3 million), special purposes and trust ($99.1 million), libraries ($41.6 million), administration ($39.7 million), student services ($38.3 million), information technology ($33.9 million), academic and research support ($31.2 million), ancillary services ($25.7 million) and external relations ($13.6 million).

 Research

Research-related revenue recognized in 2023-24 after deferments totaled $156 million. This represents an increase of $3.1 million compared to the previous year.

The university’s largest research funder was the government of Canada, providing $78 million through grants and contracts. Most funding was provided by the Canadian Institutes of Health Research ($31.7 million), the Natural Sciences and Engineering Research Council of Canada ($20.9 million) and the Social Sciences and Humanities Research Council of Canada ($6.3 million). Federal funding decreased by a net $2 million (2.6 per cent) relative to last year.

The remaining sources of research revenue include the United States ($42.7 million), foundations and associations ($21.7 million), the province of Manitoba ($7.8 million), business, industry and other ($3.9 million) and other provinces ($1.8 million).

The largest source of research-related funding from the United States was the Bill and Melinda Gates Foundation at $37.9 million.

Research-related revenue from foundations and associations comprised of funds from over 100 individual entities. Funders include Mitacs ($4.1 million), the Western Grains Research Foundation ($2.2 million) and the Children’s Hospital Foundation of Manitoba ($2.1 million).

The faculties with the highest research revenue in 2023-24 were the Rady faculty of health sciences ($95 million), the faculty of agricultural and food sciences ($16.9 million), the  faculty of science ($11.6 million), the Price faculty of engineering ($9.6 million) and the Clayton H. Riddell faculty of environment, earth and resources ($8.4 million). These five faculties accounted for 90.7 per cent of the university’s 2023-24 research-related revenue.

Research-related expenses amounted to $160.2 million in 2023-24.

University Investment Trust

The University Investment Trust (UIT) market value surpassed $1 billion in 2023-24 for the first time in its history. The UIT is an endowment fund consisting of the majority of endowed and trust-related assets that are invested together.

The 2023-24 valuation represents an increase of $105.8 million from the previous year. This increase is the result of gifts made to the UIT, in addition to a one-year 10.6 percent gross investment return.

The UIT’s spending payout was 4.25 per cent in the recent fiscal year, which the report states is “on par with most endowments of peer educational institutions.” The asset mix of the UIT investment portfolio at the end of the fiscal year was 65.6 per cent equities, 12.6 per cent infrastructure and impact investments, 11.8 per cent real estate, 9 per cent government bonds and 1 per cent cash equivalents. A new asset mix will be implemented in the 2024-25 fiscal year, with the transition expected to take 2-to-3 years.

The Annual Financial Report indicates that no disclosures were received under The Public Interest Disclosure (Whistleblower Protection) Act during the 2023-24 fiscal year.

The university’s 2024 Annual Financial Report is available online at umanitoba.ca/finance.