Introduction

Preamble

This Strategic Mandate Agreement between the Ministry of Colleges and Universities and Northern College is a key component of the Ontario government’s accountability framework for the postsecondary education system.

The Strategic Mandate Agreement (SMA):

  • outlines provincial government objectives and priority areas for the postsecondary education system
  • describes the elements of Ontario’s performance-based funding mechanism, including the college’s annual performance-based funding notional allocation for the five-year 2020 to 2025 Strategic Mandate Agreement (SMA3) period
  • establishes the corridor midpoint that will form the basis of enrolment-related funding over the five-year SMA3 period
  • supports transparency and accountability objectives
  • establishes allowable performance targets for 10 metrics upon which institutional performance will be assessed

This SMA is for the fiscal period from April 1, 2020 to March 31, 2025.

Ontario’s objectives

SMAs are bilateral agreements between the ministry and the province’s publicly-assisted colleges and universities and are a key component of the Ontario government’s accountability framework for the postsecondary education system. This cycle of agreements is focused on promoting accountability through transparency and a focus on performance outcomes. The following objectives underline SMA3:

  • increasing trust and accountability through transparency and improved performance outcomes in Ontario’s postsecondary education system
  • reducing red tape by striking an appropriate balance between accountability and reporting through streamlined processes and a reduced number of metrics
  • incentivizing colleges and universities to redirect resources and invest in initiatives that result in positive economic outcomes
  • encouraging alignment of postsecondary education with labour market outcomes
  • incentivizing differentiation and specialization to support increased efficiencies

Institutional profile

The ministry recognizes the importance of supporting a differentiated system, and recognizing institutional specializations, as a means of enhancing efficiencies in the postsecondary education sector.

The institutional profile is intended to describe how the college’s institutional mission and strategic goals support the priority areas of the Ontario government, as identified in this agreement. Institutions may also wish to include narrative related to the post-COVID-19 context for the institution.

Performance-based funding

Notional annual allocation

For the SMA3 cycle, Northern College’s annual allocation of performance-based funding has been calculated by the ministry in accordance with the college funding model and Ontario’s Performance-based Funding Technical Manual. Northern College’s notional allocations will not be impacted by previous year performance, and will follow a graduated activation plan as follows:

Year2020–212021–222022–232023–242024–25
Differentiation Envelope$1,839,524$2,549,614$3,281,315$3,987,948$4,341,265
Performance-based GrantN/AN/AN/A$1,222,146TBD

Notes:

  1. Due to COVID-19 performance-based funding was delayed for 2020–21, 2021–22, and 2022–23.
  2. The planned system-wide proportion tied to funding (that is, Performance-based Grant) will be at 10% of system-wide total operating funding in Year 4 (2023–24) and 25% in Year 5 (2024–25).
  3. Prior to Year 4 (2023–24), the Performance-based Grant was capped at the system-average annual proportion determined for the Differentiation Envelope and residual funding above that cap remained part of the Differentiation Envelope.
  4. The Differentiation Envelope has continued to grow steadily towards the established initial level of 60% by Year 5 (2024–25).
  5. In Year 4 (2023–24), the 55% of operating funding assigned to the Differentiation Envelope is inclusive of the activated Performance-based Grant.
  6. Notional allocation represents the Performance-based Grant portion.
  7. The notional allocations presented above are based on 2021–22 operating grant totals.

Institutional weighting strategy

The performance-based funding mechanism in this SMA enables institutions to assign metric weightings to reflect institutional strengths and differentiated roles in the postsecondary education system. Assigned metric weightings will impact performance-based funding on a metric-by-metric basis per the table below. Metric details are described in the following section.

Institutional assigned metric weightings and notional performance-based funding allocations
Metric2020–21 weighting
max. 35%
min. 10%
2020–21
notional funding allocation
2021–22
weighting
max. 30% min. 5%
2021–22
notional funding allocation
2022–23
weighting
max. 25%
min. 5%
2022–23
notional funding allocation
2023–24
weighting
max. 25%
min. 5%
2023–24
notional funding allocation
2024–25
weighting
max. 25%
min. 5%
2024–25
notional funding allocation
1. Graduate employment rate in a related field10%$183,95210%$254,9615%$164,0665%$61,1075%TBD
2. Institutional strength and focus30%$551,85715%$382,4425%$164,0665%$61,1075%TBD
3. Graduation rate10%$183,9525%$127,48115%$492,19715%$183,32215%TBD
4. Community and local impact of student enrolment20%$367,9055%$127,4815%$164,0665%$61,1075%TBD
5. Economic impact (institution-specific)30%$551,85730%$764,88425%$820,32925%$305,53625%TBD
6. Graduate employment earningsN/AN/A5%$127,4815%$164,0665%$61,1075%TBD
7. Experiential learningN/AN/A15%$382,4425%$164,0665%$61,1075%TBD
8. Revenue attracted from private sector sourcesN/AN/A15%$382,44225%$820,32925%$305,53625%TBD
9. Apprenticeship-related (institution-specific)N/AN/AN/AN/A5%$164,0665%$61,1075%TBD
10. Skills and competenciesN/AN/AN/AN/A5%$164,0665%$61,1075%TBD

Notes:

  1. Colleges and universities have the opportunity to re-weight their metrics every year as part of the Annual Evaluation process throughout the SMA3 period. For metrics activated later than Year 1, a year shown in brackets indicates the first year of data available.
  2. The planned system-wide proportion tied to funding (that is, Performance-based Grant) will be at 10% of system-wide total operating funding in Year 4 (2023–24) and 25% in Year 5 (2024–25).

Priority areas and performance metrics

Summary

To support improved performance in key areas aligned with the Ontario government’s priorities and objectives, the allowable performance targets will be set against metrics that measure institutions’ effectiveness in addressing the evolving needs of the labour market, enhancing the skills and competencies of our students, and supporting a postsecondary education system that strengthens Ontario’s economic competitiveness.

The combination of established targets and assigned metric weightings will be used for institutional assessment of performance through the SMA3 Annual Evaluation process.

Skills and job outcomes

This priority area seeks to measure and evaluate the college’s role in supporting student and graduate outcomes and alignment with Ontario’s economy. Metrics measure institutional commitment to areas of strength and specialization; students’ preparation with the skills essential for employment; experiential learning opportunities; graduation; and positive labour–market outcomes for graduates, through the following performance indicators:

  • graduate employment rate in a related field
  • institutional strength and focus
  • graduation rate
  • graduate employment earnings
  • experiential learning
  • skills and competencies

Economic and community impact

This priority area seeks to measure and evaluate the college’s role in supporting Ontario’s economy. Metrics measure funding from private sector sources; the positive economic impact on local economies brought by students at an institution; and the differentiated ways institutions demonstrate economic impact, through the following performance indicators:

  • community and local impact of student enrolment
  • economic impact (institution-specific)
  • revenue attracted from private sector sources
  • apprenticeship-related (institution-specific)

Productivity, accountability and transparency

Through further engagement with the sector on metric refinement, a decision was made to remove this reporting and data collection requirement for institutions for the duration of the SMA3 period, to reduce reporting burden and duplication with other government initiatives.

Skills and job outcomes

Performance metrics: narrative

Metrics will be initiated over three years as new data is collected and validated. For 2020–21, allowable performance targets are calculated using historical data as per the Performance-based Funding Technical Manual.

For the remainder of the SMA3 cycle, allowable performance targets will be calculated annually as per the Performance-based Funding Technical Manual using the most recent historical data available for Northern College and included as part of the SMA3 Annual Evaluation process for performance-based funding. See appendix for details regarding historical data and annual allowable performance targets.

For the skills and competencies metric being initiated for performance-based funding in 2022–23, the Ministry of Colleges and Universities will apply a ‘participation weighting’ of five % of annual performance-based funding notional allocations for all institutions. Institutional targets will not be set for this metric in SMA3. Participation will be validated and included as part of the SMA3 Annual Evaluation process for performance-based funding.

Graduate employment rate in a related field
Definition: proportion of graduates employed full-time in a field related or partially related to their program six months after graduation
Source: College Graduate Outcomes Survey, Ministry of Colleges and Universities

Metric initiated: 2020–21

Institutional strength and focus
Name: Health Sciences, Technology and Trades, Arts
Definition: enrolment (full-time headcount, domestic and international) in an institution’s program area(s) of focus
Source: Provided by institutions, validated by College Statistical Enrolment Report (CSER), Ministry of Colleges and Universities

Metric initiated: 2020–21

Graduation rate
Definition: percentage of full-time students (domestic and international), who entered a program of instruction in a particular enrolment reporting period and graduated within a specific period of time (200% program completion timeframe for diploma and certificate programs and 175% for degrees)
Source: Graduate Rate Submission Process, College Graduation Rate Tool

Metric initiated: 2020–21

Graduate employment earnings
Definition: median employment earnings of college graduates in a given calendar year, two years after graduation
Source: Educational and Labour Market Longitudinal Platform, Statistics Canada

Metric initiated: 2021–22

Experiential learning
Definition: number and proportion of graduates in programs, who participated in at least one course with required Experiential Learning component(s)
Source: Ministry of Colleges and University’s Graduate Record File Data; File attached to College Graduate Outcomes Survey

Metric initiated: 2021–22

Skills and competencies
Name: Program-Related Knowledge and Skills
Definition: Percentage of students in their final semester of study who agree that their program has improved their ability to perform specific, essential skills for success in the workplace
Source: Ontario College Student Experience Survey

Metric initiated: 2022–23

Through the fall 2021 engagement with the sector, a decision was made to forgo using the Education and Skills Online (ESO) tool for the Skills and Competencies metric in order to provide more flexibility to institutions during the COVID-19 pandemic. The ministry will allow institutions to select an institution-specific measure of skills and competencies that aligns with ministry-established criteria or choose from the ministry’s pre-approved list. The Skills and Competencies metric will be updated as part of the SMA3 Year 3 Annual Evaluation process.

Economic and community impact

Performance metrics: narrative

Metrics will be initiated over three years as new data is collected and validated. For 2020–21, allowable performance targets are calculated using historical data as per the Performance–based Funding Technical Manual.

For the remainder of the SMA3 cycle, allowable performance targets will be calculated annually as per the Performance–based Funding Technical Manual using the most recent historical data available for Northern College and included as part of the SMA3 Annual Evaluation process for performance–based funding. See appendix for details regarding historical data and annual allowable performance targets.

Community and local impact of student enrolment
Definition: institutional enrolment share in the population of the city (cities) or town (towns) in which the institution is located
Source: College Statistical Enrolment Report (CSER), Ministry of Colleges and Universities, Census Data, Statistics Canada

Metric initiated: 2020–21

Economic impact (institution-specific)
Name: Talent Pipelines
Definition: Programs with a Talent Pipeline MOU (numerator) with Northern College MCU programs (denominator)
Source: Northern College data

Metric initiated: 2020–21

Revenue attracted from private sector sources
Definition: total revenue attracted from private sector and not-for-profit sources
Source: College Financial Information System

Metric initiated: 2021–22

Apprenticeship-related (institution-specific)
Name: Completion rates of all levels of trades offered
Definition: Students’ completion of apprenticship in school training levels
Source: Student Record System

Metric initiated: 2022–23

Productivity, accountability and transparency

Through further engagement with the sector on metric refinement, a decision was made to remove this reporting and data collection requirement for institutions for the duration of the SMA3 period, to reduce reporting burden and duplication with other government initiatives.

Enrolment profile

In addition to the performance-based funding outlined in sections above, institutions will receive enrolment-related funding through a funded corridor ‘midpoint’ to provide funding predictability to institutions.

Corridor midpoint

For funding purposes 1,361.84 Weighted Funding Units (WFUs) will be the corridor midpoint value for the five-year period from 2020–25 for Northern College. Enrolment-related funding will be will distributed consistent with this level of enrolment and subject to the policies contained within the Ontario College Funding Formula Reform Technical Manual, May 2017, Version 1.1.

Note: Midpoints were established using the average of funding-eligible enrolment from 2015–16, 2016–17, and 2017–18.

Projected funding-eligible enrolment

Note: Tables report on full–time headcounts from the fall term.

Below is Northern College’s projection of funding-eligible full-time headcount as of March 31, 2020.

Credential2020–212021–222022–232023–242024–25
Ontario College Certificate236249249249249
Ontario College
Diploma/Advanced Diploma
871908908908908
Ontario College
Graduate Certificate
1416182022
Baccalaureate Degree in
Applied Area of Study
141103106106106
Total1,2621,2761,2811,2831,285
Credential2020–212021–222022–232023–242024–25
All other funding activity in
full–time equivalent;
Part–time, Tuition short
-----

Projected international enrolment

Below is Northern College’s projection of funding-ineligible international full-time headcount at college-operated campuses as of March 31, 2020.

Credential2020–212021–222022–232023–242024–25
Ontario College Certificate133134134134134
Ontario College
Diploma/Advanced Diploma
945984984984984
Ontario College
Graduate Certificate
150175200225250
Baccalaureate Degree in
Applied Area of Study
-----
Total1,2281,2931,3181,3431,368

Below is Northern College’s projection of funding-ineligible international full-time headcount at campuses operated by private partners as of March 31, 2020.

Credential2020–212021–222022–232023–242024–25
Ontario College Certificate-----
Ontario College
Diploma/Advanced Diploma
7207207208001,000
Ontario College
Graduate Certificate
2,8802,8802,8803,2004,000
Baccalaureate Degree in
Applied Area of Study
-----
Total3,6003,6003,6004,0005,000

Appendix: historical data, targets and results

The following table will be refreshed annually by the ministry to display results from SMA3 Annual Evaluation process and update Allowable Performance Targets (APT) for the current year. The SMA3 Annual Evaluation will occur every year in the Fall-Winter and the updated appendix will be made publicly available the following Spring. Please note that fields with a hyphen indicate where data will be populated in later years of SMA3.

It should be noted that historical data reflects pre-COVID-19 context. Actual values achieved during the SMA3 period may include COVID-19 pandemic impacts.

Note: The values in the 2020–21 Actual performance column of “Experiential learning “(row 7) and for “Revenue attracted from private sector sources” (row 8) were not tied to performance as these metrics were not yet activated. They are included in the calculation of the 2022–23 Allowable Performance Targets.

Northern College - SMA3 performance
Note: “2020–21 Actual” refers to the year in which the evaluation takes and not necessarily the data from that year.
Metric2016–17
Historical
data
2017–18
Historical
data
2018–19
Historical
data
2020–21
Allowable
performance
target
2020–21
Actual
performance
2021‑22
Allowable
performance
target
2021–22
Actual
performance
2022–23
Allowable
performance
target
2022–23
Actual
performance
2023–24
Allowable
performance
target
2023–24
Actual
performance
2024–25
Allowable
performance
target
2024–25
Actual
performance
1. Graduate employment rate in a related field71.43%72.73%82.31%71.03%80.77%74.11%50.00%58.06%51.87%49.62%---
2. Institutional strength and focus68.14%37.75%48.81%29.88%47.40%31.16%31.86%35.95%34.21%41.10%---
3. Graduation rate65.99%67.76%63.14%64.20%62.62%62.55%73.08%60.95%78.29%67.42%---
4. Community and local impact of student enrolment3.95%2.36%2.31%2.30%2.13%2.20%1.36%1.65%1.50%1.38%---
5. Economic impact (institution–specific)6.56%3.28%8.20%3.28%14.75%3.28%14.29%7.52%32.81%7.08%---
6. Graduate employment earnings$33,230$35,096$38,198N/AN/A$34,673$37,929$35,561$31,516$32,966---
7. Experiential learning54.11%
(2017–18)
49.79%
(2018–19)
46.60%
(2019–20)
N/AN/A49.52%29.30%35.28%11.42%23.64%---
8. Revenue attracted from private sector sources$9,059,323
(2017–18)
$14,496,039
(2018–19)
$19,651,872
(2019–20)
N/A$23,570,534$10,211,402$23,570,534$16,730,881$24,249,353$20,525,736---
9. Apprenticeship–related (institution–specific)94.62% (2019–20)95.51% (2020–21)80% (2021–22)N/AN/AN/AN/A95.01%80.00%83.12%---
10. Skills and competenciesN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A---

Notes:

  1. For metrics activated later than Year 1, the year in brackets indicates the first year of data available.
  2. Skills and Competencies is a participation metric activated based on data collection and reporting rather than target setting. Data are required and will be posted in SMA3 Year 4 (2023-24) and Year 5 (2024-25).