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Subject ............ 

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.Date ............ .Ap.i1 

..... 2.5. ...... 1.9.7.9 ....... . 

Endowment Fund 

INTRODUCTION 

At its April 2nd meeting, Senate referred the following motion 

and proposed motion: to the Senate Committee on the University Budget. 

Motion II (1) 

"That Senate recommend to the Board of 

Governors that a portion of the money 

saved due to the strike be returned to 

students in the form of the establishment 

of an endowment fund to be used for non- 

repayable grants." 

• ? 

Motion II (2) 

"The terms of reference of said fund 

to be established in consultation with 

the Simon Fraser Student Society." 

In referring these two motions to SCUD, Senate acknowledged 

that SCUB should provide its advice directly to you while informing 

Senate of the action taken. 

In its evaluation of these two motions, SCUB identified 

three major issues to be addressed: 

First, are there likely to be substntia1 

savings from the strike by AUCE #2? 

Second, is the establishment of an ?ndow- 

ment fund for student financial aid the most 

appropriate method for attracting and retaining 

academically, excellent students? 

Third, if the response to the second issue 

is affirmative, what magnitude of fund is required 

in order to satisfy the objective underlying its 

establishment? ? 

.

It may well be fallacious to assume major cost reductions 

resulting from the strike. Offsetting the reduction in AUCE salaries 

paid are rebates to those living in residence, overtime compensation, 

and other strike related expenses. Most important, the formula for 

allocating the provincial operating grant among the three universities 

includes a financial penalty for those universities whose actual 

enrolments are less than projections. Specifically, if our 1979/80 

actual enrolments are less than our projections, the University will 

in 1980/81 have to pay back monies reflecting the enrolment shortfall. 

Such a shortfall would also affect expected tuition revenues. The 

combined effect of all of these factors suggests that even if "net 

cost reduction" is realized, the University should be cautious in 

assuming major new commitments. 

Irrespective of "strike savings," the primary issue is surely 

one of concern with the effect of the strike on the continued 

academic viability, of the institUtion. This issue affects all 

members of the University community and demands that discussion be 

focused on those actions which Simon Fraser could and should take 

in order to maintain and enhance its reputation for academic excellence. 

If we are 

to

successful 

retain and 

in

attract 

this endeavour, 

high quality 

then 

students 

the University 

and faculty. 

will 

. RECOMMENDATION 

In light of this analysis, we recommend the following: 

• ? 

1. With regard to disposition of any "net cost reduction" 

(a)

the decision of how to utilize such funds await the 

availability of complete accounting information on 

the net amount of cost reduction and updated enrolment 

figures. 

(b)

Since any cost reductionwill be a non-recurring item, 

creation of endowment funds for specific purposes or 

•

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the allocation of one-time funds to solve non-recurring 

problems would be appropriate. 

Possible purposes for which endowments might be created 

include: Graduate and Undergraduate Scholarships, bursaries, 

Aid to Foreign Students and Funding for Distinguished 

Speakers. 

Possible non-recurring areas for which a one- 

time infusion of funds might be appropriate include: 

Day Care Centre and Open House. 

We emphasize that. these suggestions are neither exhaustive 

nor ordered by priority. 

.

-3-

2. A fundamental problem area is the maintenance of S.F.U. s 

attractiveness to students particularly in light of the 

negative publicity resulting from the strike. Regardless 

of any strike-related cost reductions, the Committee believes 

it is imperative that steps be taken immediately to counteract 

these negative effects. 

In addition to those actions which are already being taken, 

the Committee suggests consideration of the following. First, 

the bringing to campus of select groups of academically 

excellent high school and regional college students from 

around the Province. Second, enlisting the co-operation of 

academic departments in an intensified high school and regional 

college liaison effort. While both of these activities will 

require the expenditure of substantial dollars, we believe that 

the return to Simon Fraser in public image, student enrolment 

- both quantitative and qualitative - will outweigh the costs. 

J. J. Wein)eam 

Chairman 

SCUB 

JJ:dw 

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