CUSA Operating Budget 2015-2016 RE: Executive Compensation

Dear Ravens,

There has been some confusion in recent days about the line in the 2015-2016 CUSA Operating Budget regarding executive compensation. We’ve included some supplementary documents on our website to clarify any questions or concerns you may have.

Note 1 of the document clarifies an error in accounting in the 2014-2015 Operating Budget in the assignment of vacation pay to government benefits and taxes. Vacation pay, as stipulated by the Ministry of Labour for the province of Ontario must be at least four percent (4%) of gross income for a 12 month period.[1]

Note 2 highlights the self-imposed cut of executive cell phone benefits for the 2015-2016 Operating Budget. Executives previous were allotted one hundred dollars ($100.00) each, per month to offset cell phone expenses. This year’s executive opted to decrease this amount by six thousand-six hundred dollars ($6600.00) to reinvest those funds into programming, service centres and clubs and societies.

Note 3 simply reflects the increase in government taxes and benefits by 1.37% from the 2014-2015 academic year to the 2015-2016 academic year. It is important to note that the benefits as prescribed by this section are not exclusive to CUSA executive but rather, standard full time employment contributions such as employment tax, CPP (Canada Pension Plan), employment insurance, health tax and workers compensation.

Note 4 reflects the adjustment of executive wages by CPI (Consumer Price Index) from 2014-2015 to 2015-2016, a total of 0.6%. Each year the CRA (Canada Revenue Agency) stipulates the annual Consumer Price Index and employers are recommended to adjust the wages of their employees in accordance to the prescribed rate. It is important to note that this practice is reflected in the wages of all regular CUSA staff – including service centres, businesses and administration. The 1281 Collective Agreement and the 3011 Collective Agreement stipulate an increase in wages for their staff of CPI or 2% whichever is greater, and CPI or 2.5% whichever is greater, respectively. For context, this has resulted in an increase of $0.26 per hour for a number of CUSA’s Service Centre Coordinators.

Note 5 reflects the cumulative effect of these adjustments to CUSA Executive pay for 2015-2016. Executive will be paid $5,410.70 less than 2014-2015.

Note 6 further breaks the decrease in executive pay down to yearly ($901.78 decrease), bi-weekly ($34.68 decrease) and hourly ($0.43 decrease) changes.

The second supplementary document refers to some of the questions regarding executive transition pay. Executive transition pay is made to outgoing CUSA executive to facilitate the training and integration of incoming CUSA executive, to ensure the seamless continuation of the association’s operations. As we have begun our annual audit for the 2014-2015 fiscal year, it has been brought to our attention that the 2014-2015 executive transition pay was allocated to the wrong budget line.

The attached budget working sheet under Vice-President Finance, shows the actual amounts spend for executive honoraria and transition pay of 2014-2015.

We hope this information will provide clarity regarding the decrease in executive pay for the 2015-2016 Operating Budget. CUSA is and has always been dedicated to responsible, transparent and efficient management of your finances. If you have any additional questions please feel free to direct them to Vice-President Finance Craig Handy at vpf@www.cusaonline.ca

[1] http://www.labour.gov.on.ca/english/es/pubs/guide/vacation.php

Executive Pay Breakdown

VPF Working Sheet

 

Fahd Alhattab 

President & CEO,

Carleton University Students’ Association, Inc.

613 520 6688 x 1603 | www.cusaonline.ca | twitter.com/CUSAPresident