Everything You Wanted to Know about Budget

1. Everything You Wanted to Know about Budget

2. Major Fund Types • General Operating • Core operating activities • Funding allocated via budgets • Fiscal year cycle (April to March) • Specific Purpose • Conferences, service contracts and activities funded through endowments • Project oriented • Sponsored Research • Externally restricted grants for specific research projects • Project oriented • Ancillary Enterprises • Units on self-supporting basis • Capital Fund • Land, buildings and renovations

3. Operating Budget Information • developed to support the strategic plan • source of funds: gov’t grants & student tuition • main expenditure: salary ~76% of total budget • use of position control • must budget for benefits • salary increases funded centrally • includes funds 10000, 15000, & 11310 • includes Base and Non-recurring

4. Framework vs Department Allocations April 1 May June July Aug Sept Oct Nov Dec Jan Feb March 31 Budget Framework – This document, approved by the Board of Governors, outlines the revenues and expenditures of the University at a summary level. Base Budget Allocation – President or Vice-President provides their respective faculty or department with their current year base budget changes based on department requests. Each faculty/department then provides the Budget Office with their allocation decisions. Budget Office Adjustments – Base budget allocations include: salary increases and faculty turnover. Non-recurring budget adjustments include: study leaves, carry-over, reserves or other allocations. Faculty/Dept Reallocations – Budgets can be realigned throughout the year at the request of the faculty/department to the Budget Office.

5. Sources of Operating Budget • Central base budget • allocations per Framework • Departmental revenue • external revenues • Internal recoveries • program fees

6. Types of Operating Budgets Base Budget • also called ‘recurring’ budget • represents on-going revenues and expenditures • all continuing, regular employees must be base funded • identified in FAST in ‘Base Budget’ column Non-recurring Budget • also called ‘one-time’ funding • provided for one year only • may fund term employees • identified in FAST in ‘Total Budget’ column using “n/r” in description

7. How is the Budget Managed Ongoing? • Departmental base and non-recurring transfers • new allocations (new hires) • resource reallocations (reclassifications) • sessional funding transfers to departments from Deans • carryover and/or reserve drawdowns • departmental requested changes • Central or other transfers • annual salary changes • one-time funds to cover: • projects • enrolment management • start-up grants

8. Use of position control all continuing, regular positions in the Operating fund must be base funded Must budget for benefits Salary increases funded centrally Reclassifications are funded by Department Salaries are reconcilied Canada Research Chairs department is given vacancy to fill Michael Smith Foundation grant award is usually short term (3-5 yrs) sessionals required for teaching component Other grant funded similar to MSF How are Positions Managed?

9. What is FAST ? • Management tool providing financial information for budget control and decision making • Data warehouse providing web delivery of financial information updated daily and available 24/7 • Based on fund accounting principles • data structured in hierarchies

10. FAST provides questions to: • How much do I have to spend? • How much have I spent so far? • How much have I committed to spend? • How much will be left at March 31?

11. Commitments Commitments in FAST are generated from : • Appointments in the CHRIS (HR/Payroll) System • Purchase orders issued for goods and services • Procurement Card transactions Items not reflected in FAST Commitments: • wages for time reporting employees (paid by timesheet) • benefits on salaries paid outside of the General Operating Fund • Internal charges • Items purchased under blanket or standing orders • expenses paid via cheque requisitions or travel expense reports

12. “Transfer of Funds” • Budget transfer • Within general operating • Can’t cross funds • Email or memo request to budget office • Expense Transfer • Move expenses to match revenue • Most common type • Journal entry to accounting to move ‘actuals’ • Revenue Transfer • Must have external revenue • Journal entry to accounting to move ‘actuals’

13. What Happens to Unspent Funds? • Carryover policy is 100% • Key management tool • Sources • favorable budget variance • planned savings (7359) • Choice: • operating carry forward and/or • equipment reserves (interest earned)

14. Where Do I Find My Carryover? • Procedures • c/o report to Deans/Executive Directors • equipment reserve allocations? • year end balances posted to 11310 • Carryover drawdown requests • email or memo to budget office • spending must happen in year drawdown request made • Equipment reserve drawdown requests • email or memo to budget office • equipment only • once allocated can not be used for another purpose

15. Minor Capital – What is it? • Funding from the province • Provided to support: • cyclical maintenance • accessibility • alterations and renovations • Not for capital or equipment

16. Minor Capital Process • letter to Deans / Directors • submit ranked projects • FMGT reviews ,evaluates and costs each project & develops report • Budget developed based on rankings and review by VPFO, VPAC & FMGT • Funding is never enough! • Notification to departments

17. Support • Departmental administrative staff • Dean’s Office • Budget Office • Accounting Services • Purchasing Services