Vice-President (Finance and Resources)
Authorization: Board of Governors
Approval Date: Feb 4, 2005
To outline approval and oversight requirements for General Operating Budget adjustments during the year. This policy does not apply to enhanced salary funding which may be provided at an amount exceeding policy limits in order to enhance recruitment. Our practice is that the Provost or the Vice-Provost authorizes additional funding arising out of recruitment of faculty and staff in base budget positions.
This policy is also not intended to apply to the allocations of funds within specific operating fund envelopes for which Board approval and a reporting mechanism has been established. As an example, one-time and permanent allocations will be made within the envelope of the Academic Priorities Fund and reported to the Board annually. This policy does not apply to corrections of errors. Where errors in application of budget policy have occurred they will be corrected by FSD (Budget Management) and reported periodically to PCIP.
The Board approves the Detailed Operating Budget for the University. This budget includes the allocation to Colleges, Administrative Units and specific "central accounts". A mechanism is required to allow for administrative authority to accommodate both one-time and on-going funding requirements that may arise during the year. Given the financial constraints faced by the University and the need to allocate resources to priority areas, it is planned that this administrative authority would be exercised on a limited basis and only with evidence of financial need.
The amount provided for administrative allocation for both one-time and on-going funding allocations will be limited to $500,000 each year, with permanent adjustments to comprise no more than $250,000 of this amount. Within the Detailed Operating Budget, a $500,000 provision may be established for this purpose. This limit may be adjusted as part of the Detailed Operating Budget approval process subject to Board approval and to the extent allowable within the financial limits set by the Multi-Year Budget Framework.
Revisions, either on an ongoing or a one-time basis, to the Detailed Operating Budget allocation for Colleges and Administrative Units may be approved by Senior Administration in accordance with the procedures outlined below.
Permanent Budget increases of up to $100,000 per item and of up to $100,000 for a specific College/Administrative Unit may be approved by the President on recommendation from PCIP. In any year, permanent budget increases cannot exceed $250,000 in total.
One time Budget increases of up to $25,000 may be approved by a Vice-President, with the proviso that the increase is not provided to that Vice-President's operating unit. One time increases of up to $100,000 may be approved by the President on recommendation from PCIP.
Board approval is required for any funding adjustments which do not meet the criteria outlined in the foregoing statements.
A report outlining approvals for the period and year-to-date will be prepared on a monthly basis by FSD (Budget Management) and will be provided to Senior Administration.
A report will be provided to the Board with the details of permanent budget adjustments as part of the interim and annual financial statement report package.
There are no other documents associated with this policy.
Contact Person: Manager, Budget Management, FSD