Montreal, January 11, 2013 – In statements reported in a daily newspaper this morning, the president of FEUQ, Martine Desjardins, made some very serious accusations against Quebec university rectors and principals and CREPUQ.
Ms. Desjardins accused those in charge of our universities of manufacturing the appearance of a deficit. This statement, which is completely false, is intended to compromise the universities’ credibility in the public eye. “Unfortunately, we have strayed far from the serious debate on universities in which the government has invited Quebec society to participate,” deplored Luce Samoisette, Chair of the CREPUQ Board of Directors and Rector of Université de Sherbrooke. FEUQ and its spokesperson are breaking with the positions held by previous student leaders and seem to be pursuing an attack on the universities and those who run them. Under such circumstances, how is it possible for the coming Higher Education Summit to produce the enlightened vision of a university system that Quebec needs to ensure its future?
In accordance with budget rules decreed by the government and with generally accepted accounting principles, expenses that can be amortized over several years must be recorded in the capital fund, even if they are paid through the operating fund. Indeed, this is often mandatory, as per Ministry rules. Transfers from the operating fund to the capital fund are therefore anticipated, and clearly defined in the Politique de capitalisation des immobilisations pour les réseaux de l’éducation, de la santé et des services sociaux. Such is the case, in particular, for laboratory equipment, library books, furniture, equipment and tools, and computer equipment for students.
“Every transfer is faithfully and transparently recorded in the financial statements, which are subject to an external audit and submitted to the government. Transfer decisions must be approved in advance by the university boards of directors (which have student and teacher members) and it is misleading to say they are made by ‘the rectors,’” added Daniel Zizian, Director General of CREPUQ.
It is highly abnormal for someone whose job it is to represent the university student population in a public debate to make judgements based on a misunderstanding of university financial regulations.
Furthermore, CREPUQ reiterates that the methodology used to measure the operating budget funding shortfall of Quebec universities compared to universities in other Canadian provinces is extremely rigorous and validated by recognized experts.
Government presentation is ambiguous
In addition, it bears noting that, in the preparatory document for the meeting on university governance and funding, the government’s presentation of the universities’ financial situation is rather ambiguous.
A table on page 22 of the document creates the impression that the universities are in a surplus position by adding the accumulated balance in the operating fund to the accumulated balances in the capital fund, the restricted fund (research and chairs), the endowment fund and others, whereas in fact these funds are subject to specific restrictions. For example, the endowment fund contains money donated for particular purposes and the capital may never be touched. Presenting the figures in such a way leads to confusion regarding the universities’ real financial position.
CREPUQ includes all 19 Quebec universities. The organization acts as their voice in relations with government and milieus concerned with university education and research. It also fosters coordination and collaboration between universities, is a research centre for university administrations, acts as a centre for coordination and joint service delivery, and is a resource centre and think tank for its members.
Source:
Chantal Pouliot, Director of communications
Conference of Rectors and Principals of Quebec Universities
514-288-8524, poste 244
cpouliot@crepuq.qc.ca
http://www.crepuq.qc.ca