Section B:
Financing education systems

View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

Archived

This page has been archived on the Web.

B2 Public and private expenditure on education
Average expenditures per household [PDF version]
Average university tuition fees [PDF version]
University revenues [PDF version]
University expenditures [PDF version]

B2 Public and private expenditure on education

Average expenditures per household

Table B.2.7

This subset of Indicator B2 (total education expenditure in Canada) presents information on the percentage of households incurring education expenditures and the average expenditure per household, in current dollars (Table B.2.7). Data are from the Survey of Household Spending (SHS).

Concepts and definitions

• Household refers to a person or a group of persons who occupy a private dwelling and do not have a usual place of residence elsewhere in Canada.

• Percentage of households reporting educational expenses was calculated by dividing the number of households that incurred educational expenses by the total number of private households, then multiplying by 100.

• Expenditures on education are presented for the following four categories: supplies (all levels); textbooks (all levels); tuition (pre-elementary and elementary-secondary); and tuition (postsecondary). 
  
  For supplies, textbooks and tuition fees, the SHS asks about spending on kindergarten, nursery school, elementary and secondary education, and postsecondary education (e.g., university, trade, and professional courses). The survey also asks households to report spending on other courses and lessons (e.g., music, dancing, sports, crafts), and other educational services (e.g., tutoring, rental of school books, equipment); driving lessons are excluded. The data include special and private schools, but exclude day care and lodging expenses.

• Average education expenditure per household was calculated by dividing the total amounts of household educational expenditure by the total number of private households that incurred spending in one or more of the four expenditure categories in a given calendar year. In other words, this measure reflects average spending on education only for the households that actually incurred such costs. 

• All education expenditures are presented in current dollars. To convert this current dollar data to constant dollar amounts for comparison over time, it is recommended that the Consumer Price Index at the Canada level be used, for both national and provincial-level conversions. For the index and further details on converting, see Table  F.1.3.

Methodology

• The Survey of Household Spending (SHS) is carried out annually across Canada in private households in the 10 provinces. Data for the territories are available every other year starting with 2001. The survey covers about 98% of the population of the 10 provinces. The main purpose of the survey is to obtain detailed information about household spending during the reference year (previous calendar year).

• The following groups are excluded from the SHS: (1) those living on Indian reserves and crown lands; (2) official representatives of foreign countries living in Canada and their families; (3) members of religious and other communal colonies; (4) members of the Canadian Forces living in military camps; (5) people living in residences for senior citizens; and (6) people living full-time in institutions; e.g., inmates of penal institutions and chronic care patients living in hospitals and nursing homes.

• The sample size for 2008 was 28% smaller than that used for the 2007 SHS. The reduction of the sample size compared with previous years will have an impact on the data quality; in particular, the variance will, in most cases, be larger than before.

• In 2007, in order to reduce respondent burden, new screening questions were added to the SHS questionnaire for some categories. For a few categories, including education, this change resulted in a lower than expected percentage reporting and may have affected the average expenditures for some items in those categories.

• Beginning with 2006 data, the SHS has removed the distinction between full-year and part-year household members. Spending data is collected for the reference year for all members of the household present at the time of the interview. Since the standard tables prior to 2006 were based on full-year households only, in order to maintain comparability, data for 1997 to 2005 have been revised to include both full-year and part-year households.

• The SHS is a stratified, multi-stage sample selected from the Labour Force Survey (LFS) sampling frame.  Sample selection comprises two main steps: the selection of clusters (small geographic areas) from the LFS frame and the selection of dwellings within these selected clusters.  The sample size of the SHS now ranges between 16,000 and 17,000 households, depending on the collection year (the sample is larger in odd years when the collection is carried out in the Territories).

Limitations

• Starting with 2001, Survey of Household spending (SHS) data for Canada include the territories every second year.  For the other years, Canada-level statistics include the 10 provinces only.

• Caution should be exercised when making year-to-year comparisons since changes may not be statistically significant. Special caution is necessary when using estimates from small sub-groups. For more information about data quality, see the User Guide for the Survey of Household Spending, 2009, Statistics Canada Catalogue no. 62F0026MWE, no. 6.

Data source

• Survey of Household Spending, Statistics Canada. For more information consult "Definitions, data sources and methods", Statistics Canada Web site, survey 3508.
  http://www.statcan.gc.ca/cgi-bin/imdb/p2SV.pl?Function=getSurvey&SDDS=3508&lang=en&db=imdb&adm=8&dis=2

Average university tuition fees

Tables B.2.9 and B.2.11

This subset of Indicator B2 includes data on average undergraduate and graduate university tuition fees, over time, in current dollars, at the Canada level and by province (Table B.2.9) and by field of study (Table B.2.11). These tables are based on data from the Tuition and Living Accommodation Costs for Full-time Students at Canadian Degree-granting Institutions (TLAC), which covers the academic year.

Concepts and definitions

• Average university tuition fees represent the tuition fees charged to full-time Canadian students over the academic year; that is, September to April. Foreign students are not included. Average tuition fees for graduate studies (Master's and doctorates) are also presented. These average tuition fees do not include additional compulsory fees such as those for athletics, health services and student associations.

• The fields of study classification for undergraduate and graduate programs are adapted from the Classification of Instructional Programs (CIP), Statistics Canada's standard. The average tuition amounts for both types of programs are presented ranked from highest to lowest, based on the most recent year of data.

  Information is presented for the following 17 fields of study in both undergraduate and graduate programs: agriculture, natural resources and conservation; architecture and related services; business, management and public administration; dentistry; education; engineering; humanities; law; mathematics, computer and information sciences; medicine; nursing; other health, parks, recreation and fitness; pharmacy; physical and life sciences and technologies; social and behavioural sciences; veterinary medicine; and visual and performing arts, and communications technologies.

  The graduate programs also include Master of Business Administration (MBA) programs; specifically, Regular MBA and Executive MBA.

• All tuition fee amounts are presented in current dollars. To convert the current dollar amounts to constant dollar amounts for comparison over time, it is suggested that the September Consumer Price Index corresponding with the beginning of the university academic year (September to August) be used. For the index and further details on converting, see Table F.1.4.

Methodology

• The Tuition and Living Accommodation Costs for Full-time Students at Canadian Degree-granting Institutions (TLAC) is an annual survey that was developed to collect student financial information (tuition fees, additional compulsory fees, and living accommodation costs) on all universities and degree-granting colleges in Canada.

• The target population of TLAC is all degree-granting institutions (universities and colleges) in Canada. The survey is a census with a cross-sectional design. Data are collected for all units of the target population; therefore, no sampling is done.

• A major redesign of the Tuition and Living Accommodation Costs for Full-time Students at Canadian Degree-granting Institutions (TLAC) questionnaire was implemented for the 2007/2008 collection cycle, when fields of study based on the Classification of Instructional Programs (CIP) were used. Executive MBA and Regular MBA, previously included in the "Business, management and public administration" category were presented independently under the graduate programs; this change had a substantial impact. In 2010/2011, MBA programs were excluded from the national and provincial weighted averages to eliminate the impact of the high cost of these programs on the overall tuition fee averages for graduate programs.

• Using the most current enrolment data available, average tuition fees have been weighted by the number of students enrolled by institution and field of study.

• In Nova Scotia and in Quebec, for some years, the weighted averages take into account the different fees paid by in- and out-of-province students. In Ontario, adjustments to the calculation of weighted averages were introduced to account for fees that vary according to the year of study. In Saskatchewan, the weighted averages were calculated using the enrolments of 2004.

• All surveys are subject to errors. Only non-sampling errors apply to this survey given that no sampling process was used to produce the final results. Each year, data comparability is performed for each university and college, and any major discrepancies are investigated with the respondent. Tuition fees per program are available publicly at the institutional level.

Limitations

• Since the distribution of enrolment across various programs varies from period to period, caution should be exercised when making historical comparisons.

Data source

• Survey of Tuition and Living Accommodation Costs for Full-time Students (TLAC), Statistics Canada. For more information consult "Definitions, data sources and methods", Statistics Canada Web site, survey 3123, http://www.statcan.gc.ca/cgi-bin/imdb/p2SV.pl?Function=getSurvey&SDDS=3123&lang=en&db=imdb&adm=8&dis=2

University revenues

Table B.2.12

This subset of Indicator B2 presents the percentage distribution of university revenues, by source, at the Canada and provincial levels (Table B.2.12). Amounts are presented in current dollars.

Concepts and definitions

• Government revenues at universities refer to grants and contracts from government departments and agencies at federal, provincial, municipal and foreign level.

  The federal portion of income is mainly from six major federal government agencies: the Social Sciences and Humanities Research Council of Canada (SSHRC), Health Canada (HC), the Natural Sciences and Engineering Research Council of Canada (NSERC), the Canadian Institutes of Health Research (CIHR), the Canada Foundation for Innovation (CFI), and Canadian Research Chairs. Also included are grants and contracts from all other federal government departments and agencies.

  Grants and contracts at the provincial level include: (1) income from provincial government departments and agencies, including provincial CFI matching grants; and (2) provincial CFI matching income from the ministry responsible for the institution.

  Income from other provinces includes grants from, and contracts with, provinces other than the province with jurisdiction.

  Grants from urban transit, communication and parking authorities are examples of income from municipal governments.

  Income from foreign nations includes grants from the National Endowment for Humanities, the National Institutes of Health, and the National Science Foundation.

• Private revenues at universities refer to those obtained from any source other than government, categorized as:

  Student fees: Payments obtained from students directly in the form of tuition (credit and non-credit courses) and other fees.

  Non-government grants and contracts, donations and bequests: Financial support received by colleges and universities from donors, bequests from wills and contracts from sources other than government, the latter provided with specific stipulations.

  Sales: Institution revenue from sales of services and products.

  Investment: Revenue from dividends, bonds, mortgages, short-term notes, and bank interest.

  Miscellaneous: Commissions, royalties, and fees from the use of institution-owned rights or properties, fees for services rendered, library and other similar fines, rentals, net gain or loss on the sale of fixed assets, and any type of revenue not identified under other forms of revenue.

Methodology

• Table B.2.12 data were drawn from the Financial Information of Universities and Colleges Survey (FIUC), which was developed to provide financial information (income and expenditures) on all universities and affiliated institutions (institution may refer to universities, university-colleges, colleges, institutes and hospitals) in Canada. The survey is a census with a cross-sectional design, and the target population is all degree-granting institutions (universities and colleges) in Canada. Data are collected for all units of the target population; therefore, no sampling is done.

  The collection process of the FIUC is done using two separate questionnaires:

  1. A questionnaire developed in conjunction with the Canadian Association of University Business Officers (CAUBO), which was designed and implemented by the CAUBO Finance Committee that comprises financial administrators from six universities. These administrators meet twice a year and any proposed changes to the questionnaire and guidelines are discussed and implemented by the Committee.

  2. A non-CAUBO questionnaire, which is a virtual duplicate of the CAUBO questionnaire. Any modifications to the CAUBO questionnaire or guidelines are applied to the non-CAUBO questionnaire.

• Ontario CAUBO universities report to the province's own collection authorities (Council of Finance Officers — Universities of Ontario [COFO]). This information is then sent to Statistics Canada (STC). A mapping and integration process is then done to convert the COFO data into the CAUBO format database.

• In 1999/2000, there was a break in the series as major changes were made to the CAUBO questionnaire and guidelines, which affected the historical comparability of the data; therefore, 1999/2000 was selected as the basis for comparison. The years 1999/2000 and 2004/2005 are comparable as they are both on the same guideline definitions.

• "University-colleges" are part of the FIUC universe made by CAUBO and as such are considered universities.

• Each university (and university-college) returns its questionnaire with accompanying audited financial statements, thus ensuring data accuracy. Nevertheless, each year a data comparability review is done for each institution and any major discrepancies are investigated with the respondent.

Limitations

• Non-CAUBO data are amalgamated with the CAUBO data at the provincial level. Data for non-CAUBO institutions are not released publicly at the institution level. They can only be released at the provincial level.

• Comparisons of financial data over multiple years should be done with caution because of changes in generally accepted accounting principles that could alter the underlying data and changes in the Guidelines that govern the reporting of the data.

Data source 

• Financial Information of Universities and Colleges Survey, Statistics Canada. For more information, consult "Definitions, data sources and methods," Statistics Canada Web site, survey 3121, http://www.statcan.gc.ca/cgi-bin/imdb/p2SV.pl?Function=getSurvey&SDDS=3121&lang=en&db=imdb&adm=8&dis=2

University expenditures

Tables B.2.13 and B.2.14

This subset of Indicator B2 includes university expenditures by type of expenditure for Canada and the provinces. Amounts are presented in current dollars (Table B.2.13) and percentage distributions (Table B.2.14).

Concepts and definitions

• The capital expenditures category captures the purchase of assets intended to last longer than one year. It also provides a measure of the value of capital acquired during the year in question, including debt servicing. Spending for the construction, renovation or major repair of buildings, and to replace or purchase new equipment is included.

• Operating expenditures reflects the items that an institution purchases and consumes within a year, and those the institution purchases on an ongoing basis. Included are costs directly attributable to instruction such as salaries, instructional aids, administrative support, teacher development, and costs for other educators such as counselors. Operating expenditures are categorized further into:

  • Compensation of staff (educators and other staff), which includes gross salaries (before deduction of taxes, contributions for retirement or health care plans, and other contributions or premiums for social insurance or other purposes), plus expenditure on retirement (actual or imputed expenditure by employers or third parties to finance retirement benefits for current educational personnel) and other non-salary compensation (fringe benefits).

    Statistics on compensation of university staff are categorized as follows:

    • academic salaries paid to full- and part-time staff members engaged in instruction and research activities (includes: deans, professors, associate professors, assistant professors and lecturers; also include payments to staff members in the academic ranks for various types of leave such as administrative, academic or sabbatical.)

    • other salaries and wages include payments to other full- and part-time non-instructional (support) staff including, among others, technicians, teaching and research laboratory technicians, clerical and secretarial, professional and managerial, janitorial, trades and maintenance.

    • benefits such as pensions, group life insurance, salary continuance insurance, medical and dental plans, Workers' Compensation, health taxes, tuition remission, Employment Insurance, and other costs of employee benefit programs.  Also, includes the cost of benefits paid during early retirement periods as well as the cost of post retirement benefits.
      

• Other operating expenditures, which covers all non-salary related items such as spending on tuition fees and books, spending attributable to research and development, membership fees including fees paid by the institution to organizations such as the Association of Universities and Colleges of Canada (AUCC) and CAUBO, utilities, school services under contract, building operations and maintenance staff, and so on. Other non-salary costs include those related to the maintenance of buildings, as well as supplementary costs such as lunch programs and transportation, and other expenses not covered elsewhere.

Methodology

• "Operating expenditures" includes the following funds: general operating; special purpose and trust; sponsored research; and ancillary enterprises.

• "Other salaries and wages" includes payments to all full- and part-time non-instructional (support). Includes payments to individuals who may hold an academic rank (or equivalent), but are engaged in activities other than instruction and research.

• "Benefits" refers to the costs of institutions' contributions (with respect to salaries) for pensions (including payments for actuarial deficiencies and past service liability), group life insurance, salary continuance insurance, dental plans, Workers' Compensation, health taxes, tuition remission, Employment Insurance, and other costs of employee benefit programs.

• Table B.2.14 presents percentages that were calculated using the current dollar values for Canada from Table B.2.13.

Limitations

• While considerable effort is made to ensure that universities and colleges are preparing information in accordance with the prescribed Guidelines, there are limitations with the comparability of data. The limitations can result because of differences in the underlying accounting practices followed by institutions.  Institutional comparisons are subject to interpretation and clarification because of differences such as size, academic programs, structure, physical environment, management philosophy, and budgetary and accounting procedures.  Therefore, comparisons of financial data over multiple years should be done with caution.

• When making inter-jurisdictional comparisons, the following should be taken into account: variations in sources of funding; differences in fiscal year-end dates, which can vary from March 31^st to June 30^th, and variations in provincial policies and provincial funding responsibilities.

Data source

• Financial Information of Universities and Colleges Survey (FIUC), Statistics Canada. For more information, consult "Definitions, data sources and methods," Statistics Canada Web site, survey 3121, http://www.statcan.gc.ca/cgi-bin/imdb/p2SV.pl?Function=getSurvey&SDDS=3121&lang=en&db=imdb&adm=8&dis=2